Pcm Company's Supply Chain Analysis Of The Bullwhip Effect

Due to the drastic market competition, supply chain management now plays an important role in assisting companies to gain competitive advantage. So the problem of supply chain management becomes a popular problem and bullwhip effect becomes a main problem during the process of implementation of supply chain management.Bullwhip effect is the phenomenon of demand fluctuation from downstream to upstream along supply chain, it means the variation of order of upstream is bigger than downstream. Bullwhip effect causes shortage gaming, delivery delay and customer requirements loss that makes supply chain out of balance, seriously affects the operation of supply chain. So how to reduce the influence of bullwhip effect in the supply chain is a problem which is worth studying.This paper mainly studies the bullwhip effect in the supply chain of cosmetics industry. Firstly, the paper introduces the basic concepts of supply chain management. Secondly, the paper studies the causes, dangers and the method of management of the bullwhip effect in the supply chain. Thirdly, the thesis analyzes the mechanism of bullwhip effect from the aspect of operation management and the aspect of economics respectively, gets causes of bullwhip effect and the factors which it influences, and makes the quantitative analysis of the causes of the bullwhip effect. At last, the thesis makes Empirical Analysis for the bullwhip effect in the Fashion Marketing & Merchandising of the PCM company and gives the advices that how to reduce the influence of the bullwhip effect in the supply chain of cosmetics industry.