Analysis of the Risk Pooling to Inventory Management for a Three-Stage Supply Chain

As obscured information and asynchronous actions, the bullwhip effect suggests that the variability of orders increases as we move upstream in the military supply chain from warehouse to integrated inventory to supplier. Bullwhip effect amplifies the demand, boosts the inventories and increases the total costs of the military supply chain. In order to decrease the stock, improve the efficiency of the military supply chain, in this paper, we will focus mainly on analyzing the bullwhip effect to the inventories of three-stage military supply chain. Risk pooling is the most powerful tool to address variability in the supply chain. When analyzing the bullwhip effects in military supply chain, the influence of risk pooling has to be considered. So in order to research the appropriate way to control the stock, especially in the troop, we make this research in this paper.