A Study On The "Bullwhip Effect" Problem In Supply Chain Of XY Group

In recent years, competition in household electronic industry was serious, profitsbecame less, except competitive elements of non-price have been valued ,supplychain that was always ignored or only valued management of old model in the pasthas been one of the key elements of decreasing cost. The problem of managingsupply chains has aroused researcher recognition, and there have been more and moreresearch about them, competition among corporations has become that among supplychains. At present, supply chains management has been valued by academic andcorporation fields in domestic and abroad. With the increasing intensity ofcompetition, how to improve the ability of the added value of whole supply chains,have become the common goal of the corporations. But "bullwhip effect" hasweakened the ability of the added value of supply chains.A definition of supply chains is given in this article, and the achievement andefficiency of supply chain management, distinction between it and traditional materialcirculation and vendor management to the "bullwhip effect" problems in the supplychains are discussed. In the third chapter, the author introduces the "bullwhip effect",illustrates the "bullwhip effect" through graph, and analyses the reason and effect of"bullwhip effect". In the fourth chapter , the author puts forwards some relaxativesolution according to the reasons, and explains the classification, effect, and means ofstock management, especially elaborates the vendor managed inventory in detail, anduses mathematical model to prove that it can bring benefits to vendor and customer indecreasing inventory cost and increasing profits through exerting VMI. In the lastchapter, the article uses XY group as an example to analyze the problem of "bullwhipeffect" in supply chain management and elaborates its way of doing and improvingmeans.