Research on the Reducing Measures of Bullwhip Effect

Demand variability increases when it moves downstream to upstream in a supply chain, this is called the 'Bullwhip effect'. This effect causes unnecessary inventory build up along the nodes of the supply chain and hence reductions of this play a vital role. In this paper the causes of bullwhip effect are analyzed and the reducing measure is discussed, such as: Establishing the information sharing mechanism, Coordinating the information sharing's benefit allocation model, establishing the strategic alliance, strengthening the trust cooperation, Strengthens the stock management and reduces the supply chain lead time.