Analysis of Bullwhip Effect with price-sensitive demand function

摘要

In a single two-stage supply chain with one supplier and one retailer, we analyze the impact of demand forecast by retailer and price forecast by customers on Bullwhip Effect (BWE) under linear and iso-elastic price-sensitive demand functions. Results show that: first, smooth demand forecast can reduce BWE under both demand functions; second, concern about price fluctuation to some extent can reduce BWE when customers' price forecasting behavior influences current demand; besides, BWE under linear demand is not significant compared to that under iso-elastic demand.