Research On Strategies For The Bullwhip Effect Based On Information Sharing

The research of strategies based on information sharing to mitigate the Bullwhip Effect in Supply Chain Management is presented in this paper.In the beginning of this paper, the phenomenon of the Bullwhip Effect is discussed from two aspects: demand fluctuation and time delay, and the great harm that the Bullwhip Effect brings to supply chain members is pointed out, such as excessive storage and the rise in enterprises costs etc.Afterwards, the main causes of the Bullwhip Effect are analyzed, and the fact that the Bullwhip Effect may be controlled effectively by information sharing is concluded. According to the extent of information sharing among supply chain members, supply chains are divided into three different types, supply chains with no information sharing, supply chains with partial information sharing and supply chains with total information sharing.After studying the Bullwhip Effect in respective supply chains, the result shows that effective information sharing among supply chain members could reduce the Bullwhip Effect. Based on this research, the strategies of Supply Chain Partnership and Vertical Incorporation for the implementing of information sharing are studied.What is more, VMI, a method for low-grade information sharing in supply chains is discussed, and the effect of it on the restrain of the Bullwhip Effect is analyzed. Finally, an information system based on Internet/Intranet for high-grade information sharing in supply chains is discussed, and the feasibility and value of it on the Bullwhip Effect are verified, also the information safety and risks brought by this method is discussed.