Study On The Bullwhip Effect In Service-manufacturing Hybrid Supply Chain

Along with the economic globalization and optimal allocation of resources on a worldwide scale, the competition among enterprises is more intense. In this context, the transformation and upgrading become the development direction of manufacturing industry in China. Manufacturing enterprises service transition is an effective way to enhance the competitiveness which makes it become a research hot spot. Currently, some domestic manufacturing enterprises have transformed into service providers successfully, but most are in a state of wait-and-see. The profits we gain after the transformation and the kind of risk will faced are worth solving problems. This paper attempts to study the operation management after enterprise transformation from the aspects of service-manufacturing hybrid supply chain bullwhip effect, to provide theoretical guidance for the manufacturing enterprise service transition.This paper first generalizes the related theory, deepened to the understanding of the service-manufacturing hybrid supply chain and the bullwhip effect. Secondly, build the model of service-manufacturing hybrid supply chain based on household and personal products business unit in Dell’s direct sales business. Then, the System Dynamics are introduced, describes the main steps in its application process and analyzes the feasibility of using this method. Finally, according to the method of using steps, using Vensim software build system dynamics model. Running simulation and analysis the results.The results show that, unlike product supply chain and service supply chain, bullwhip effect may not exist in the service-manufacturing hybrid supply chain. While the main reason is the quantitative relationship between each node enterprise’s capacity adjust time according to the model in this paper. This means that the coordination of production capacity and service capacity is the key. In a service-manufacturing hybrid supply chain, bullwhip effect can be reflected by the backlog of inventory and orders. When there exists bullwhip effect, we can diminish it through enhance the authenticity of the information transmission, weakening demand uncertainty, shorten the time delay during the process of capacity adjust and make decisions from the whole supply chain.