The Bullwhip Effect in Supply Chain and Countermeasures

Abstract:

As supply chain involves a wide spread of enterprises, it is inevitable to have a bullwhip effect. The reason, why bullwhip effect occurs, includes such factors as demand forecast, delay in delivery, bulk orders and others. Bullwhip effect results increased inventory, differences in supply and demand, posing great risks on enterprise operation. To reducing the bullwhip effect in supply chains, such strategies as establishing an information-sharing platform, establishing strategic partnerships, direct ship and transit, stabling market demand fluctuations, should be taken, which will improve the competitiveness of enterprises in supply chain.

• Periodical: Advanced Materials Research (Volume 711)
• Pages: 799-804
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.711.799
• Online since: June 2013
• Authors: Yu Fang Chao
• Keywords: Bullwhip Effect, Market Demand, Strategy, Supply Chain

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