Analysis on Causes and Countermeasures of Bullwhip Effect

Abstract

Bullwhip effect is an inevitable phenomenon in supply chain management, because of its objective existence. This phenomenon is very common and harmful to make the operating costs of enterprises double and become one of the main concerns of many enterprises. In this paper, the causes of the bullwhip effect are explored through the methods of literature research and investigated consultation to weaken the bullwhip effect. This paper analyzes the key countermeasures with Wal-Mart successful logistics management case. And according to the reason of bullwhip effect, a mathematical programming model of maximizing the efficiency of supply chain is established, which provides a way to solve the negative effect of bullwhip effect and has certain reference value.