Analysis of bullwhip effect in supply chains
Shao Xiaofeng, Huang Peiqing, Ji Jianhua (School of Management, Shanghai Jiaotong University, Shanghai, 20052)
Bullwhip effect refers to the distortion of demand information propagates upstream in an amplified form in supply chains. It analyzes the possible damages that bullwhip effect brings. The causes of bullwhip effect are specifically analyzed. It points out that communication barrier and some attributes of supply chains are the major contributions to bullwhip effect. Finally, some measures for reducing the bullwhip effect are presented. The key lies in the cooperation, strategic partnership, sharing of demand information and integrated supply chain management.