AnyLogic > Case Studies > Studying the Bullwhip Effect in the Semiconductor Supply Chain: A System Dynamics Approach

Studying the Bullwhip Effect in the Semiconductor Supply Chain: A System Dynamics Approach

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 Studying the Bullwhip Effect in the Semiconductor Supply Chain: A System Dynamics Approach - IoT ONE Case Study
Technology Category
  • Functional Applications - Inventory Management Systems
  • Infrastructure as a Service (IaaS) - Backup & Recovery
Applicable Industries
  • Automotive
  • Semiconductors
Applicable Functions
  • Logistics & Transportation
  • Warehouse & Inventory Management
Use Cases
  • Demand Planning & Forecasting
  • Supply Chain Visibility
Services
  • System Integration
  • Testing & Certification
The Challenge
The semiconductor industry is characterized by capital intensity and high demand volatility, leading to the bullwhip effect. The COVID-19 pandemic further exacerbated the problem, with a drop in automotive demand and a global microchip shortage.
The Customer

MCM (Machine Centers Manufacturing)

About The Customer
Infineon Technologies AG is one of the world's largest semiconductor manufacturers. They have been using simulation tools like AnyLogic to solve production demand and supply chain problems.
The Solution
Infineon Technologies applied system dynamics tools to study the bullwhip effect and understand the impact of end-market scenarios on the supply chain. They created a system dynamics supply chain model in AnyLogic and conducted sensitivity analysis to identify key parameters affecting results.
Quantitative Benefit
  • The simulation model provided insights into the bullwhip effect and its impact on the supply chain. It helped Infineon identify key parameters affecting performance and develop a VMI KPI improvement concept to address root causes. The quantitative benefits include improved inventory management, reduced backlog levels, and increased overall supply chain performance.

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