Influence of shortening link on bullwhip effect

Reduce information delay and information distortion.

1. Reduce information delay: In the supply chain, the more links of information transmission, the greater the information delay. Shortening links can reduce the time of information transmission, make each link get the change of market demand faster, and thus reduce the influence of bullwhip effect.

2. Reduce information distortion: In the process of information transmission, every link will process and interpret the information, resulting in information distortion. Shortening the link can reduce the times of information processing and interpretation, reduce the possibility of information distortion, and thus reduce the influence of bullwhip effect.