A Study On The Bullwhip Effect And Coordination Mechanism Of Supply Chain For Mass Customization

With the increasing diversification and individuation of customers'demands, traditional mass production (MP) cannot win the new market competition any more. Then mass customization (MC) emerges. Mass customization, which can not only meet the demands of customers but also increase the profits of enterprises, is becoming the new production mode in the 21st century.Through the study of the bullwhip effect and coordination mechanism of supply chain for MC, Solutions to the problems of bullwhip effect and the profit conflicts among supply chain members are put forward. The purpose is to make sure the supply chain operates efficiently and help implement MC successfully.Firstly, some basic theories of MC are introduced, including the background, characters, types, strategies and the comparison with MP.Secondly, the characters of supply chain for MC are summarized. Then a push-pull integrated driving mode of supply chain and an internet-based supply chain model for MC are introduced.Thirdly, the causes and harms of bullwhip effect are introduced. Based on the analysis of bullwhip effect in supply chain for MC and the comparison with that in the push supply chain, conclusions are drawn: the bullwhip effect in supply chain is reduced by MC and can be further reduced by information sharing. Then how to fulfill information sharing is studied. An information platform for MC is designed to fulfill information sharing of supply chain members and reduce the bullwhip effect.Finally, the coordination mechanism between the MC manufacturer and the supplier is discussed. According to the MC manufacturer's flexible demands for the supplier's products, the quantity flexibility contract, which is enlarged, is used between the MC manufacturer and the supplier. Based on the analysis of the contract, conclusions are drawn: (1) the quantity flexibility contract can make the MC manufacturer get the flexible purchase of the products from the supplier; (2) reduce the risk from the uncertainty of customers'demands and (3) under certain conditions,...