The Theory Analysis And Demonstration Study Of The Bullwhip Effect In Supply Chain

Due to the drastic market competition, supply chain management (SCM) now plays an important role in assisting companies to gain competitive advantage. SCM is therefore a key for the firms to achieve multi-company co-operation across traditional mortar and brick enterprises and enables them to pursue and share opportunities in the dynamic marketplace. As SCM is often affected by the production and inventory strategy, information distortion appears in it. Because of these information distortions, the demand order variability in the supply chain is amplified as it moves up the supply chain even when the downstream consumer sales do not vary much. This kind of phenomenon, called bullwhip effect, creates severe inefficiencies for the whole supply chain. So the emergence of the bullwhip effect in the supply chain is rapidly becoming a research focus.This thesis examines the bullwhip effect in supply chain systemically in both qualitative and quantitative ways. Based on the analysis of the supply chain's infrastructure, the existence of the bullwhip effect is discussed. Then the supply chain management theory is discussed by studying the concept of SCM, the producing and development of SCM and the study content of SCM. Following it...