Abstract—As obscured information andasynchronous actions, the bullwhip effect suggests that the variability oforders increases as we move upstream in the military supply chain fromwarehouse to integrated inventory to supplier. Bullwhip effect amplifies thedemand, boosts the inventories and increases the total costs of the militarysupply chain. In order to decrease the stock, improve the efficiency of the militarysupply chain, in this paper, we will focus mainly on analyzing the bullwhipeffect to the inventories of three-stage military supply chain. Risk pooling isthe most powerful tool to address variability in the supply chain. Whenanalyzing the bullwhip effects in military supply chain, the influence of riskpooling has to be considered. So in order to research the appropriate way tocontrol the stock, especially in the troop, we make this research inthis paper. 

Keywords-Risk Pooling;  Military Supply Chain;  Inventory Management

1. Introduction

The bullwhipeffect suggests the variability of demand increases. In the military supply chain,although troops' items do not seem to vary much, there is pronouncedvariability in the warehouse's demand to the integrated inventory. Furthermore,the integrated inventory's demand to the supplier varies even more in time. Fora detailed elaboration of the bullwhip effect, see Kahn (1987) [1], Leeet al.(1997a,b) [2] [3],Metters (1997) [4] and Pablo A. Miranda, Rodrigo A. Garrido (2004) [5]. 

Numerous studies find the bullwhip effect in some industries and innumerous examples from individual products and companies, which observed anincrease in demand variability as one moves up a supply chain, Lee et al.(2004) conclude that nowadays “the bullwhip effect is a standard industry termand reference to it in industry publications has become commonplace”(p.1891) [6]. Inaddition, Dejonclcheere et al. (2003) find that an important factor to thebullwhip effect is the replenishment rule used by the supply chain members[7]. EricSucky. (2008) conclude the bullwhip effect in the supply chains is anoverestimated problem[8]. The authors conclude that whatever forecasting method is used(e.g. exponential smoothing or moving averages), order-up-to systems willalways result in the bullwhip effect, but what the amplification of the demandhas fewer people to quantify, especially, in the complicated structure of thesupply chain, so this incites us to research.