The Procurement And Supply Chain Of Automotive Sheet "bullwhip Effect"

Bullwhip effect is a common phenomenon occurred in the development of logistic supply chain. It demonstrates the gradual magnification of information misinterpretation in course of the information flow in supply chain management.With the development of China's automotive industry, the instability of the ordering process has become more and more prominent in automotive supply chain management, it usually starts from a tiny fluctuation on vehicle sales market, triggers bigger demand fluctuation in auto plant and finally making the biggest shake on original material demands. That is called bullwhip effect in the automotive supply chain.This paper begins with the discussion of bullwhip effect in automotive supply chain, then the main cause, harm and reasonable solutions of bullwhip effect in automotive supply chain are analyzed. On basis of these statements, the paper focuses on the phenomenon of bullwhip effect in the supply chain of automotive steel sheets purchasing, puts forward the quantitative analysis and measurement of the bullwhip effect in the supply chain and discusses how baosteel automotive steel sheets supply strategy weakens it's effect. Finally, detailed discussion has been made on the conduction of the whole process cycle of contract management of baosteel, which has active function in the weakening of the bullwhip effect in the supply chain of automotive steel sheets purchasing.