Analysis and Control on the Bullwhip Effect in the Course of Forecastng and Procecssing of Demand Information
Min Li
Abstract
Min Li
Abstract
The existence of the bullwhip effect was considered for a simple twolevel supply chain comprising a single manufacturer and a single retailer with nonstationary end demand.The demand variability is decreasing in the processing of retailers forecasting.But the demand variability increases significantly in the course of processing the demand information by both the retailer and manufacturer.And information sharing can reduce the bullwhip effect,but cannot eliminate it absolutely.
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The existence of the bullwhip effect was considered for a simple twolevel supply chain comprising a single manufacturer and a single retailer with nonstationary end demand.The demand variability is decreasing in the processing of retailers forecasting.But the demand variability increases significantly in the course of processing the demand information by both the retailer and manufacturer.And information sharing can reduce the bullwhip effect,but cannot eliminate it absolutely.
Key concepts: Bullwhip effect, Supply chain, Demand forecasting, Information sharing, On demand, Course (navigation), Control (management), Supply chain management