The importance of bullwhip effect in information processing in supply chain

Bullwhip effect is considered as fluctuations in demand observed in manufacturers, distributors, wholesalers and retailers through supply chain. The factors that cause the bullwhip effect are laid down by four main factors. These are non-zero demand signal processing and lead time, batch sizing, price fluctuations and shortage game. However, these researches about the goods supply chain do not have the same validity when it comes to services. . In the service supply chain, service provider should arrange backlogs very carefully because there is not any available space for the storage of the final product like as classic products supply chain. Bullwhip effect in service supply chains consisting of five different reasons. Those are backlogs of business, increase in the frequency of customer contact, the return point, the fallout effect and the lack of understanding of the administration.