Author(s)

Aijing Feng ^1,2

Affiliation(s)

¹ School of Business, Shandong Normal University, Jinan, 250014, China
² Meigu School, Shandong Normal University, Jinan, 250014, China

Corresponding Author

Aijing Feng

ABSTRACT

Bullwhip effect in supply chain widely exists in supply chain, which is a phenomenon of demand variation and amplification in supply chain and an image expression of demand information distortion in supply chain. Specifically, the bullwhip effect refers to the fact that when the information flow in the supply chain is transmitted from the end customer to the original supplier, the information is distorted and gradually enlarged due to the inability to effectively share the information, which leads to more and more fluctuations in demand information. Bullwhip effect increases the inventory cost and transportation cost of each subject in the supply chain, which greatly affects the operation level of the supply chain, and even has a serious impact on the economy of the whole country. It has also attracted the attention of many scholars for many years, so alleviating the problem of bullwhip effect is a necessary prerequisite for enterprises to operate normally, provide high-quality products or services and effectively enhance the competitiveness of the supply chain. This paper first expounds the bullwhip effect in the supply chain, and on this basis, deeply analyzes the causes of the bullwhip effect, and puts forward corresponding mitigation countermeasures, so as to reduce the variability of demand in the supply chain, alleviate the bullwhip effect, improve the competitiveness level of the supply chain, and enhance the operational efficiency of the supply chain, so that the main bodies in the supply chain can achieve multi-win.

KEYWORDS

Bullwhip benefit; supply chain; demand information; information sharing

CITE THIS PAPER

Aijing Feng, Research on the Causes of Bullwhip Effect in Supply Chain Management and Its Mitigation Countermeasures. Industrial Engineering and Innovation Management (2023) Vol. 6: 39-43. DOI: http://dx.doi.org/10.23977/ieim.2023.060406.

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