An improved method of controlling bullwhip effect and the analysis of the bullwhip effect

Ran Li^{1, 2}

¹School of Management, Hefei University of Technology, Hefei, Anhui, China

²School of Management, Anhui Jianzhu University, Hefei, Anhui, China

The bullwhip effect is an important parameter to measure whether the logistics management is good or not. The bullwhip effect affects the production, inventory, transport efficiency in logistics management seriously. In this paper, we establish the structural model of supply chain with multi distribution centre and apply control method to inhibition the bullwhip effect. We analyse the control mechanism of the bullwhip effect and present the control arithmetic to control the bullwhip effect. All the processes are under the circumstance that the demand is worst according to the control theory. At last we processed a stochastic control simulation experiment to control the bullwhip effect. The result shows that the bullwhip effect is inhibited and the bullwhip effect is reduced and stable. The first part of this paper is the related problem description. The second part is basic model and quantitative description of bullwhip effect. The third is control method. The last part is a simulation example.