A MULTI-AGENT BASED SYSTEM FOR REDUCTION OF BULLWHIP EFFECT IN SUPPLY CHAIN MANAGEMENT

Abstract

Stability of supply chain is one of the major concerns to make the company moving forward and to attain the  energetic behavior that describes transforms of inventory into  orders over time. The bullwhip effect reveals the magnification of inventory and orders compared to consumer demand. The strategy of control has effects on the stability and bullwhip effect in supply chain system. Managing Supply Chain is very complex as it is a set of connections which involves multiple entities such as suppliers, manufactures, distributors, and retailers, encompassing their activities of moving goods and adding value from the raw material stage to the final delivery stage. Every chain has its own unique set of market demands and operating challenges. Retailing is one such service domain of Supply Chain vulnerable to bullwhip effects. Demand uncertainty is one of the root causes of Bullwhip effects. Finally a thought on new directions in bullwhip research is presented in this paper