Modelling the Bullwhip Effect under the Implementation of Supply Chain Management Software

Reducing the bullwhip effect is of the main challenges in the field of supply chain management (SCM). One of the solutions is to implement SCM software for collaborating within every upstream and downstream supply chain members effectively. However, there is a lack of measurement models to show the relationship between changes of the bullwhip effect and the implementation of SCM software. Therefore, this study proposed an innovative model for measuring the bullwhip effect under the implementation of supply chain management software. Moreover, an empirical four-stage supply chain case in Taiwan is taken for numerical analysis. The results show that a higher implementation rate of supply chain management software in the supply chain, the more improvements of the bullwhip effect will make. Furthermore, it also found that under the same software implementation rate in better performed and worse performed supply chains, the worse one can make more notable improvements for the bullwhip effect.