2012Logistics Sci-techRequires access

Weakening Analysis of Bullwhip Effect with Information Sharing in Supply Chain

Chao Liu

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Abstract

In this paper,the bullwhip effect generated from the non-sharing information in supply chain was first discussed.And then,the retailers in the downstream of a two-stage supply chain were discussed.As for a steady demand,the exponential smoothing approach was adopted for short-term demand forecast,and the bullwhip effect of retailers and suppliers at the stage of information forecast stage and processing stage in a simple supply chain of a retailer and a supplier was analyzed quantitatively.Then,it can be concluded that the establishment of information sharing system of enterprises on the supply chain can significantly decrease the negative impact from the bullwhip effect.Finally,the paper furthers analyzed the establishment of information sharing system of case enterprises,and also probed into managerial implications.

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What this paper is about

In this paper,the bullwhip effect generated from the non-sharing information in supply chain was first discussed.And then,the retailers in the downstream of a two-stage supply chain were discussed.As for a steady demand,the exponential smoothing approach was adopted for short-term demand forecast,and the bullwhip effect of retailers and suppliers at the stage of information forecast stage and processing stage in a simple supply chain of a retailer and a supplier was analyzed quantitatively.Then,it can be concluded that the establishment of information sharing system of enterprises on the supply chain can significantly decrease the negative impact from the bullwhip effect.Finally,the paper furthers analyzed the establishment of information sharing system of case enterprises,and also probed into managerial implications.

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Available abstract

In this paper,the bullwhip effect generated from the non-sharing information in supply chain was first discussed.And then,the retailers in the downstream of a two-stage supply chain were discussed.As for a steady demand,the exponential smoothing approach was adopted for short-term demand forecast,and the bullwhip effect of retailers and suppliers at the stage of information forecast stage and processing stage in a simple supply chain of a retailer and a supplier was analyzed quantitatively.Then,it can be concluded that the establishment of information sharing system of enterprises on the supply chain can significantly decrease the negative impact from the bullwhip effect.Finally,the paper furthers analyzed the establishment of information sharing system of case enterprises,and also probed into managerial implications.

Key concepts: Bullwhip effect, Supply chain, Exponential smoothing, Information sharing, Business, Supply chain management, Demand chain, Demand forecasting

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