BUS606: Operations and Supply Chain Management

The implementation of SCM software is an effective way to collaborate within every upstream and downstream supply chain members and to reduce the bullwhip effect. With the deficiency of numerically analysed the effect of implementing SCM software in literature, this study aims to model the relationship between SCM software implementation and changes of the bullwhip effect in supply chain.

Acceding to the numerical simulation on an empirical four-stage supply chain case in Taiwan, the results show that a higher implementation rate of supply chain management software in the supply chain can be helpful to improve the bullwhip effect. Moreover, it is also found that under the same software implementation rate in better performed and worse performed supply chains, the worse one can make more notable improvements for the bullwhip effect. This means that implementation of SCM software is not only helpful for those well-performed supply chains, but can even make more contributions to the poor-performed ones.

This study has developed the model to demonstrate the "degree of information sharing" by connecting SCM software implementation rates and the bullwhip effect. This model has an advantage of quantifying the benefit of using the SCM software to share the supply chain information. Given the fact that the bullwhip effect has an impact on information quality, the magnitude of a direct relationship between the bullwhip effect and information quality might be an interesting area for future research.