Analysis of Bullwhip Effects in Perishable Product Supply Chain Based on System Dynamics Model

In contrast, there exist bullwhip effect in the supply chain of perishable product more easily. We establish a system dynamics model of the supply chain of perishable product, analyzing the causes of the bullwhip effects. Analysis shows that the changes of consumer demand, the differences of retailer's order cycle, wholesaler's order cycle, production cycle, the delivery delay of wholesaler and delivery delay of producer, retailer's stock, wholesaler's stock, producer's stock, etc, can interact, the effects are amplified step by step, finally bring bullwhip effects. By analyzing the conditions for convergence of the system, adjusting the order cycle and delivery delay time, optimizing the model, we can see that the response of the improved model tends to be a stabilized convergence function. Sharing sales data and inventory information, shortening the links of the supply chain, reducing lead time or delivery time, coordinating orders, establishing strategic partnership and cooperation mechanism of the enterprise strategy, etc, such measurement can eliminate bullwhip effects.