The Impact of Information Sharing on Bullwhip Effect Problem in Supply Chain Networks

This paper studies the bullwhip effect problem in supply chain networks with information sharing.We first propose the basic system state transition model of supply chain inventory networks and a dynamic inventory control strategy.Then we extend this model into supply chains with limited information sharing and study its system dynamics.The inventory strategy design problem is transformed into the linear matrix inequalities optimization problem.The effect of information sharing in reducing the bullwhip effect is studied.Results show that the types of information sharing and their timeliness have different effect on the bullwhip effect.Simulation study also shows the effectiveness and application of the dynamic inventory control method in reducing bullwhip effect.