Analysis Of The Bullwhip Effect In Supply Chain And Weakening

With the development of economy and globalization, companies are beginning to have closer relationship with each other, which make a great room for the development of supply chain management. And now supply chain management are being more and more important, especially under the condition that more and more multinational companies are trying to expand their business all over the world.According to the situation above, more and more people are paying attention to the research on supply chain management. As far as supply chain management is concerned, the key is how to promote the system efficiency of the whole supply chain. Because if they can deal with it very well, it is not very difficult to see supply chain with low operation cost, better service and powerful competence.As a remarkable phenomenon in the supply chain management, the bullwhip effect has enormous impacts on the supply chains. This phenomenon will occur when information is lack of fidelity caused by uncertain factors in the whole supply chain. Now many researchers and managers pay attention to the phenomenon. It is important to analyze the bullwhip effect systemically and comprehensively.The paper discusses a promoted inventory policy to restrain the bullwhip effect. First, a general literature review relating to the bullwhip effect is presented. The reasons of the bullwhip effect and its impacts on the supply chain management are analyzed in detail. Next based on the traditional inventory policy and forecasting policy, we give out quantitative analysis on bullwhip effect. At last we suggest a control variable technique to weaken bullwhip effect. This technique can be adopted in practical supply chain management simply and feasiblely. And we set up a stabilizing inventory control policy model. The results indicate that this new promoted inventory policy can restrain bullwhip effct.