Study on weakening the bullwhip effect of supply chains based on game theory

The Bullwhip Effect is an observed phenomenon in forecast-driven distribution channels. In supply chains, the Bullwhip Effect is also known as demand variability amplification, that is, the product demand fluctuations in the level of orders for products in supply chains is much larger than the actual market changes in the level of sales, and upstream along the supply chains to enlarge. The paper tried to apply Game theory to weaken the Bullhwip Effect. Firstly, the feasibility of applying game theory in supply chains is analysed; then, the Game model of the bullwhip effect in supply chains is built; and lastly weakened the bullwhip effect by game theory analysis.