Journal of Northeastern University ›› 2008, Vol. 29 ›› Issue (4): 480-483.DOI: -

• OriginalPaper • Previous Articles     Next Articles

Restraining bullwhip effect in tight market

Li, Yang (1); Gao, Li-Qun (1); Kong, Zhi (1)   

  1. (1) School of Information Science and Engineering, Northeastern University, Shenyang 110004, China
  • Received:2013-06-22 Revised:2013-06-22 Online:2008-04-15 Published:2013-06-22
  • Contact: Li, Y.
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Abstract: Discusses the bullwhip effect resulting from the linear assignment mechanism which the suppliers applied to tight market. Then, the bullwhip effect is available to be restrained by way of a reasonable distribution based on the historical record of retailers' goods return rate. In case the supply contract is terminable and the retailers' return rate exceeds the upper limit of supplier's tolerability, the supplier can terminate the supply contracts in goods distribution. And in case the supply contract is interminable, the supplier can choose the function of retailers' order for goods to restrain the high return rate in goods distribution. The two measures are suggested to take because either one can reduce efficiently the bullwhip effect in tight market under different conditions.

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