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DOI:http://dx.doi.org/10.26855/jamc.2021.06.002

Genesis and Tactics of Bullwhip in Supply Chain Effect Using SD Simulation

Date: April 30,2021 |Hits: 181 Download PDF How to cite this paper

Shupei Liu, Qiang Sun*

Business School, Shandong University of Technology, Zibo, China.

*Corresponding author: Qiang Sun

Abstract

Bullwhip effect not only distorts demand information but also reduces the ability to response fluctuations in market demand of entire supply chain. Advancing research on evolution mechanism of bullwhip effect and analyzing control strategies will have important practical significance for stable supply chain development. This paper constructs a model of three-level supply chain that includes retailers, wholesalers and suppliers as the main entities and reports the results of simulating models with different structures and vendor managed inventory. The results shows that bullwhip effect does exist in supply chains and that the effects of fluctuations in three parameters of inventory level, sales prediction and ordering rate gradually increase in magnitude along supply chain to different degrees. Both supply chain level and inventory management method have a direct impact on bullwhip effect. On this basis, practical measures such as information sharing and supply chain structure optimization can be used to alleviate bullwhip effect.

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How to cite this paper

Genesis and Tactics of Bullwhip in Supply Chain Effect Using SD Simulation

How to cite this paper: Shupei Liu, Qiang Sun. (2021) Genesis and Tactics of Bullwhip in Supply Chain Effect Using SD Simulation. Journal of Applied Mathematics and Computation5(2), 73-83.

DOI: http://dx.doi.org/10.26855/jamc.2021.06.002

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