Review of the Multi-Agent Approach for Reduction of Bullwhip Effect in Supply Chain

As the complexity of supply chain is growing, Bullwhip effect becomes critical issue in supply chain. The bullwhip effect is a dynamical phenomenon in supply chains. It refers to the fluctuation in orders, grow as we move upstream in supply chain. The bullwhip effect can be counter attack effectively by companies by thoroughly understanding its underlying causes. Innovative strategies are implemented by industry leaders that pose new challenges: to make entire new information system, defining new organizational relationship. Distorted information can lead to many inefficiency: misled capacity plan, excessive inventory cost, poor customer service, missed production schedules, lost revenues, excessive revision, poor product forecast, high cost of correction, inactive transportation etc .For modeling dynamic and distributed system like SC, MAS is regarded as an efficient approach. This paper reviews an ongoing development and past research studies of Multi-Agent approach applied to supply chain for the reduction of bullwhip effect.