International Conference on Education Technology and Management Science (ICETMS 2013)

Study on Countermeasures that Reduce Reverse Bullwhip Effect in County Retail
Supply Chain
Zhaohui Liu

Yuwen Wu

College of Qinhuangdao
Northeast Petroleum University
Qinhuangdao, China e-mail:lzhzdh@sohu.com Liren College
Yanshan University
Qinhuangdao, China

Abstract—The state of the county Retail Supply Chain is completely opposite to the bullwhip effect, which is called reverse bullwhip effect. The reason that causes reverse bullwhip effect is analyzed, the countermeasures are put forward that can reduce reverse bullwhip effect.
Keywords-the county territory; Retail Supply Chain; reverse bullwhip effect

I.

INTRODUCTION

Developing rural market has become a develop strategy for retail enterprises in our country, many retailers started to seize county and county towns market. Because rural land in
China city is vast, relatively scattered, the long distance between the villages, and relatively backward infrastructure, logistics network construction, the most supermarkets located at county seat. Limited by scale and market scope, its goods suppliers are always surrounding the county. The limitations of this county, determines this scope of supply chain management different from city supply chain management. The bullwhip effect is refers to the consumer demand fluctuations along the supply chain step by step from bottom to top amplifier, due to the upstream inventory excess or

production capacity magnification. Bullwhip effect was first put forward in 1963 by Forrester, since then, many domestic and foreign scholars have analyzed the bullwhip effect from different perspective, and put forward many effective methods to weaken this bullwhip effect.
Bullwhip effect has been recognized by academia and industry, therefore, the phenomenon opposite to bullwhip effect was found. That is, demand information is control even narrowed from downstream to upstream in the supply chain, eventually lead to the phenomenon of out of stock.
This phenomenon is named as "reverse bullwhip effect". The existence of "inverse bullwhip effect" will damage all enterprises in the supply chain, including damage to the enterprise goodwill, loss of customer trust and deteriorating sales contradiction, etc. The purpose of this study is to analysis the reason that causes reverse bullwhip effect in county Retail Supply Chain , and hope to be able to find feasible solutions.
II.

STRUCTURAL ANALYSIS OF COUNTY RETAIL SUPPLY
CHAIN

The basic structure of the county Retail Supply Chain is shown as figure 1.

Figure 1. the Retail Supply Chain structure of the county

© 2013. The authors - Published by Atlantis Press

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In the upstream of the supply chain, suppliers consist of farmers, small commodity producers, manufacturers and distributors at all levels. Among them, the farmers mainly come from the county seat around the countryside, they supply to supermarkets and retail enterprises produced qualified fruits and vegetables and other agricultural products; Majority of commodity producers come from the surrounding rural areas, and most of them are originated in the original rural handicraft workshops. With the progress of technology, the increase in the strength, and gradually formed a small, in processing agricultural and sideline products consisting mainly of small commodity production enterprise. Manufacturers and distributors at all levels are responsible for supplying to retail enterprises such as home appliances, garments and other goods that can't be produced within the scope of county.
Core enterprise located in the middle reaches of the supply chain is mainly compost of retail enterprises and their franchise stores within the scope of the county. Most of retail enterprises located in the most bustling commercial center in the county, its main target market is the