Bullwhip Effect Of Supply Chain Study Based On Information Sharing

This article mainly studies the bullwhip effect from the perspective of information sharing in the supply chain management. For information, the concept itself is complexity. In order to simplify the problem, this article will fall into three categories of information sharing, namely, the order information sharing, demanding information sharing and inventory information sharing. Through these perspectives this article studies the bullwhip effect in supply chain management and we use the information sharing to reduce the bullwhip effect on the overall negative impacting on operations.The innovation of this paper is to apply the mathematical model to integrate the bullwhip effect and the information sharing and proves the importance of information sharing which resolve the bullwhip effect from the quantitative aspect. This article will also be two general study of the supply chain (producers, retailers) extended to the three supply chain (producers, distributors, retailers) model. Theoretically it proves that bullwhip effect does exist. And to some extent it shows that three types of information sharing can be reduced the bullwhip effect in the supply chain.This article also proves the importance of information sharing by the empirical analysis. The final conclusion is: first, in essence, the order information sharing is not for information sharing, but it can provide a basis method for weakening of the bullwhip effect, such as reducing lead time, increasing the forecast period. Second; demanding information sharing and the sharing of inventory information can be reduced the bullwhip effect. But for the retailers, the best way to weaken the bullwhip effect is to use the advanced forecasting techniques to make the accurate prediction of a market which make the changes to minimize differences. And for distributors and manufacturers, the information sharing can indeed weaken the bullwhip effect, and producers using the demanding information sharing can bring the more value than using inventory information sharing. The reason is that demanding information sharing is the sharing of the actual needs of the end consumer dates, and inventory information sharing is for their own inventory levels downstream businesses, not directly to end customers, it may filter the information in the middle. Generally speaking, to some extent, information sharing can be reduced the bullwhip effect.