The Study On The Bullwhip Effect

Since the 21st century, with the economic globalization and the information technology development, the enterprises pay more attentions on the production operation and the cost control because of the increasingly market competition, and supply chain management become one of important means for the enterprise to gain advantage in the competition.Uncertainties in supply chains is a main reason which induce some difficulties in supply chain management. Bullwhip Effect,the phenomenon induced by uncertainties in supply chains,has some bad influences on the whole supply chain. Therefore, studieying the causes and the attenuated mechanism of Bullwhip Effect will raise the supply chain effectiveness of the management, It is very important not only for implementing supply chain management but also for increasing our interprises competitive abilities.The article firstly summarize the content of supply chain management, and put forward the phenomenon of happenning in the supply chain. secondly, the article introduces the origin of Bullwhip Effect by the way of practice analysis and economic analysis, and proposes the malpractice of supply chain structure,the lowness of contract managerial effectiveness and asymmetrical information, which are the main factors of the Bullwhip Effect happenning, on the base of the analysis abovely ,thirdly, this article establishes two stage models and the multi-stage model, carrying on the quantitative analysis to Bullwhip Effect, simultaneously introducing one example,emphasize that it is rational and neccesary to weaken the bullwhip effect from the supply chain structure, contract management and information sharing three areas . Finally, proposing the related attenuated measures for Bullwhip Effect.Due to the low level of the author, there still exists some shortcoming in the thesis. Hopefully, some of the management ideas in this thesis could be act as reference for supply chain management decision—makers.