Demand amplification, also known as bullwhip effect, is the amplification of demand variability as it progresses up a supply chain. Bullwhip effect has determinental effects on the performance of supply chains. Objective of this paper is to quantify the impact of information sharing on bullwhip effect in a model of inventory and order based multi-echelon supply chain. System dynamics simulation, with the help of iThink software package, has been applied. It has been found through simulation experiments that information sharing can be a very effective strategy to control bullwhip effect across supply chains. Increasing the percentage of information sharing results in bullwhip reduction. In a model of four tiers supply chains, information sharing can reduce bullwhip effect from 20:1 to 8:1. This shows that supply chains manager can effectively reduce cost, improve customer service level and increase efficiency of their supply chains by sharing information across whole supply chains.
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