Buffet Effect Simulation Model on Demand Chain Management

Bullwhip effect means the magnification of demand fluctuations, which is evident in a supply chain when demand increases and decreases, while the concept of Demand Chain Management means to make the planning on the basis of the demand side information so as to solve the problem of inconsistent upstream and downstream information by means of partner collaboration in the supply chain. Demand chain emphasizes the customer demand as its core value so as to achieve the best balance between the supply chain efficiency and customer satisfaction. Compared with the supply chain, the demand chain advises the enterprise to strengthen the information transmission ability to promote the performance. Under the demand chain management, the extent of bullwhip effect are weakened, and the fluctuation range against demand chain management is lower than against traditional supply chain.