Tackling Rationing and Shortage Gaming Reason of Bullwhip Effect With Fuzzy Logic Approach

The supply chain is major part of business activities. In the supply chain, every organization orders from its instantaneous upstream collaborators. Usually, the retailer’s order do not match with the authentic retail sales. The bullwhip effect refers to the incident where orders to the supplier tend to have bigger variance than sales to the buyer (i.e. demand misrepresentation), and the alteration propagates upstream in an enlarged form (i.e. variance amplification). It is verified that if the members of the supply chain allocate information with intellectual support technology, and concur on enhanced and superior fuzzy estimates on future sales for the upcoming period, then the bullwhip effect can be significantly reduced.