Bullwhip Effect Generation Mechanism And Control Mechanism

Competitions between enterprises will become competitions between supply chains in future,uncertainties in supply chains is a main reason which induce some difficulties in supply chain management.Bullwhip Effect,the phenomenon induced by uncertainties in supply chains,has some bad influences on the whole supply chain. It is very important not only for implementing supply chain management but also for increasing our competitive abilities how to study its formation mechanism and control strategies.The paper,at first,uncoved intrinsic factor for inducing Bullwhip Effect which based on analyzing the operation mode of supply chain,and studied its formation mechanism.Then studied Bullwhip Effect in a two-stage SC model,and it was discussed that influences on Bullwhip Effect was induced by complicated structure and member relations of supply chain.Finally, the paper presented some control strategies that can be taken to mitigate Bullwhip Effect in SC.After founding a quantity contract model,it was showed that the model can reduce Bullwhip Effect.Main innovation of this paper:Based on analyzing the operation mode of supply chain by systems engineering,the paper uncovered new intrinsic factor for inducing Bullwhip Effect.By founding a notional model about formation mechanism of Bullwhip Effect,the paper presented new methodology that can be used as analyzing Bullwhip Effect.After founding a quantity contract model,the paper analyzed its applied value by qualitative analysis and quantitative analysis.