The Influences Of Bull Whip Effect In Company Supply Chain And Counter Measures

Marketing competition state has been changed according to market environmentchanging. Contemporary market competence has been changing from the competententerprises to supply chains.In SCM, it often exists such phenomena: because it is inaccurate to predict, thedemand is indeterminate, supply is unstable, enterprise person who is lack ofcooperation, produce and transport without harmony supply that lead to the fact suchas stock remain high, cost increase. There are lots of original causes refer to theseproblems, but one of the main reasons is the Bull Whip Effect.Due to it, this article express how the bull whip effect impact on supply chainmanagement, efficiency, cost control of Rexnord by the study on the bull whip effectin each pitch point of supply chain. Then analyze the scale of bull whip effect throughvariance which leads to the procedure how the bull whip effect occurs in supply chain.Furthermore, it is aiming at Rexnord historical sale data to carry on the empiricalanalysis, analyzing this company’s demand situation, using time index smoothingprocedures of the demand model to carry on the predict. Outcome data of this analysisprove the bull whip effect does exist in Rexnord supply chain and figure out the scaleof it together with finding out the root cause of how bull whip effect comes.Base on stock management, game theory, predict technology we can finddecrease counter measures how to reduce the impact of bull whip effect on supplychain.Through looking for bullwhip effect control measures to search the Rexnordentire supply chain bullwhip effect control strategies and recommendations.