Research on Control of Bullwhip Effect Based on Kalman Filter Arithmetic

Abstract

To control bullwhip effect effectively is a prerequisite to reduce operational costs of supply chain system. Supply chain system with multiple distribution centers in which there is a single kind of product sold is selected as a study case. Control of system disturbance to cause bullwhip effect in supply chain is discussed based on Kalman filter theory and stochastic control method. Firstly, product inventory nominal model of supply chain system is set up and influence mechanism of bullwhip effect is concluded. Secondly, transmission process of product demand information in supply chain system is analyzed. Thirdly, calculation model of bullwhip effect is obtained by the comparison of product inventory fluctuation quantity of the distributor with product demand fluctuation quantity of the tradesman. Finally, arithmetic and control strategy of bullwhip effect are raised based on Kalman filter theory. The study provides a new method to control bullwhip effect in supply chain.