Research On The Bullwhip Effect In Supply Chains Considering The Market Competition

Supply chain management is one of the most important parts of business management, and its efficiency determines the success or failure of the enterprise. IITI(Integration of Information Technology and Industrialization) and Industrie 4.0 require supply chain management to be more efficient. The bullwhip results demand information distortion, the upstream enterprise is unable to get the reality demand. It disturbs the regular production plan, increases the enterprise operating costs, and reduces the service level of the supply chain. In the face of the open economy environment and the fierce market competition, the deeper study on the conditions of occurrence, the influence factors and the reduction strategy are needed. It has a profound theoretical and practical significance for the improvement of the supply chain efficiency, the promotion of enterprises’ key competitiveness and the ability against external risk and the steady and fast economic growth.In the background of increasingly fierce market competition, the thesis builds a kind of supply chains with two retailers. We mainly analyze the influence factors and the reduction strategy of the bullwhip effect, and the innovation of the thesis is as follows.1. The market competition is considered in the supply chain model. Two retailers follow two independent demand processes, and the market competition is replaced by the relevance of two retailers’ demand in the deduction of the bullwhip. Moreover, two retailers both assume the price or sales as the decision variable of game, the market competition is considered by setting the adjustment speed of the price and sales.2. The market competition and the consistency of demand volatility are also two important factors affecting the bullwhip effect. We get the expression of the bullwhip effect under the fixed the demand process, the inventory policy and the forecasting method. The expression is a function on the market competition and the consistency of demand volatility.3. The pricing mechanism is involved in the study of the bullwhip effect. The product price is considered in the demand process, the price in the next period is decided in according with the marginal profit by the bounded rationality.4. The bullwhip effect is analyzed by the non-linear theory. We build the dynamic game system of price and sales, the stabilization, period doubling bifurcation and chaos will be shown with the increase of the adjustment speed. The bullwhip and the inventory volatility rate are compared under different states in the experimental design, the impact on the bullwhip and the inventory volatility rate is investigated.