The Analysis Of Bullwhip Effect With Control Theoretic Approach

From the 1990s, firms have been gradually regarding competing as part of supply chain against other supply chains, rather than as a single firm against other individual firms. Supply chain management has been accepted by entrepreneurs. Bullwhip Effect which often induces the whole supply chain in low efficiency, is an peculiar phenomenon in supply chain management. Therefore the research of bullwhip effect has a theoretical value and practical significance.The frequency response plot and the noise bandwidth in control theoretical approach are widely used in this paper. Firstly, the author looks back and analyzes the developing course of SCM, and considers that the main reason for lack of a universal definition of SCM is the interdisciplinay identity, then elaborates the inventory management and proposes the factors that restrict the supply chain development. Second,this paper expatiates the theory of bullwhip effect, explores the cause of bullwhip effect from technical application and economics, and summarizes references which used control theoretical approach to analyze bullwhip effect.Third, OUT (Order-Up-To) policy is widely used, the two-stage and multi-stage supply chain which use this policy are analyzed with control theoretical approach, and that information sharing can reduce the bullwhip effect is testified.Fourth,the control theoretical approach is applied to analyze bullwhip effect of different replenishment policies, and their rules are the keys inducing bullwhip effect and the parameters can reduce or aggravate the impact of the bullwhip effect to a certain extant. With reasonable section and using appropriate replenishment the bullwhip effect may be reduced.Fifth, based on the above quantitative analysis, the author puts forward four feasible measures to reduce the bullwhip effect in supply chain.Last, the author summarizes the paper and prospects the research in the future.