One important research problem in supply chain management that has drawn much attention is the information distortion phenomenon known as bullwhip effect.In this thesis, firstly, we introduce some basic conception of SCM. Secondly, we describe the character of bullwhip effect and its negative action on supply chain management in detail. Based on analyses of its causes, we propose that bullwhip effect is resulted from the supply chain structure. Thirdly, we have a deep research on how the organization structure, information structure and decision structure of supply chain affect the bullwhip effect, and we establish a multi-stages inventory control system model of the supply chain to study the effect further by computer simulation. Finally, we present several practical actions that can be taken to mitigate the bullwhip effect based on the above analyses.
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