Study On Countermeasure Against Bullwhip Effect In Supply Chain

Bullwhip Effect is a key problem in supply chain, which results in redundant stock, product planning exaggeration, cost increasing and so on. In some time bullwhip effect impacts on national income .So research on bullwhip effect has been a focus. Traditional research on bullwhip effect can be divided into three aspects: a) the existence of the effect; b) related quantitative analysis; c) how to control the effect and optimize its stability. Unfortunately, till to now there are few scholars to conduct systematic study, for most of them only concentrate on one or two individual aspects and base their result on simple one supplier-and-one retailer chain. Contrastingly, this thesis synthesizes the reasons and negative effects of bullwhip effect, and emphasize on countermeasures.In the paper the author firstly summarizes the negative effects of bullwhip effect, reason of existence and how to control it. Secondly studying on simple two-echelon supply chain, making up of one supplier-and-one retailer, and another type supply chain, making up of one supplier-and-two retailer, the author give out quantitative analysis on bullwhip effect. Thirdly in order to make the study more applicable, the author adopt two different assumptions: supply abundance or deficiency. It proves that VMI plan would also help restrain bullwhip effect. In supply deficiency condition, retailers intend to overestimate demands, which could account for bullwhip effect increase. So the author innovate historical data allocation measure to control this phenomenon.