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Chinese Journal of Management Science ›› 2013, Vol. ›› Issue (2): 107-113.

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Bullwhip Effect in Supply Chain Networks with Lead Time Delays and Its Inventory Control Strategy

LI Chong1,2, LIU Si-feng2, FANG Zhi-geng2, BAI Yang2   

  1. 1. School of Management, Fuzhou University, Fuzhou 350108, China;
    2. College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 210016, China
  • Received:2011-04-19 Revised:2012-12-31 Online:2013-04-30 Published:2013-04-25

Abstract: The bullwhip effect problem has been recognized as one important topic in supply chain management. It brings bad effect on supply chain performance and reduces the efficiency of supply chain management. Based on the dynamic characteristics of inventories in a supply chain network, a supply chain inventory system state transition model is presented, which includes the operation lead time delays in system. Then a dynamic inventory control method is proposed to reduce the bullwhip effect. Based on the control theory, the solving process of the proposed inventory control method is presented. Further, the effect of lead time delays on inventory control performance of supply chain networks is studied. Simulation study shows the effectiveness of the proposed inventory control method in reducing bullwhip effect and in improving supply chain performance.

Key words: inventory control, supply chain systems, bullwhip effect, lead time delays

CLC Number: