Bullwhip Effect and the Value of Information Sharing in Supply Chain

The essence of bullwhip effect is the opposability existing between enterprises,which makes it difficult for information to be shared effectively.The main reasons for the bullwhip effect are: requirement forecasting,order quantity,price fluctuation,rational countermeasure,time delay,lack of harmonization and the structure of supply chain.Although research on the bullwhip effect is the highlight in the research of supply chain,the problem of the value of information sharing in supply chain has not been solved perfectly at home and abroad.In order to restrain or reduce the bullwhip effect,the communication between the enterprises in the supply chain should be enhanced.This can also be defined as information sharing,the specific calculating of which could be worked out by 1-to-N model.