In general enterprise inventory management, there are common problems of excessive inventory and amplified demand variation in the entire supply chain (i.e., the "bullwhip effect"). In order to ensure the company's on-time production, many companies have the problem of excessive inventory. The main reason for this phenomenon is that inaccurate sales forecasts are the main reason for high inventory. Public preferences are volatile, and many factors can cause irregular purchasing tendencies, resulting in great uncertainty in the needs of general users and distributors. In addition, information communication with downstream companies is not smooth, etc., which increases the difficulty of sales forecasting. There is also the technical issue of inventory management, which is mostly managed empirically rather than digitally. Current asset utilization is low because it is difficult to strike a perfect balance between demand and cost control. Inventory costs cannot be controlled because many companies do not include inventory in cost accounting, especially total cost accounting. The institutionalization of inventory management is lagging behind, firstly because of the lack of institutionalized system, and secondly because the system is difficult to implement well, resulting in a "wall system". Errors in cargo strategy and poor ability to control in time. This uncertainty comes from the ordering department itself. It involves whether there is a reasonable ordering strategy, whether the supply and demand information of upstream and downstream enterprises is accurate and timely, etc. Unstable ordering cycles. This mainly depends on whether your own supply channel is single and whether the supplier's performance level is satisfactory. Failure to effectively communicate with various departments resulted in deviations in basic information such as inventory, goods in transit, and demand. In the supply chain, each enterprise will order from its upstream. Under normal circumstances, sellers will not place an order with the upper-level supplier once an order is placed. Instead, based on the consideration of inventory and transportation costs, they will order in a cycle or After a certain quantity is collected, orders are placed with suppliers; in order to reduce ordering frequency, reduce costs and avoid the risk of out-of-stocks, sellers often place additional orders based on the optimal economic scale. At the same time, frequent orders will also increase the supplier's workload and cost. Suppliers often require sellers to order in a certain quantity or period. At this time, sellers want to get the goods as early as possible or get the goods in full, or to prepare for emergencies. , often artificially increasing order quantities. In this way, the layer-by-layer amplification of order quantities may lead to the order demand obtained by the final supplier being several times or even dozens of times the actual demand of users. This has brought great negative effects to various companies in terms of inventory management and production. We call this phenomenon the "bullwhip effect." The reasons for the amplification of demand variation, the "bullwhip effect", are relatively complex. The main reasons involving inventory management are: information asymmetry between enterprises, lead time issues and inventory imbalances. Information asymmetry among enterprises. Due to the lack of information exchange and sharing, companies cannot grasp the real demand of downstream and the supply capacity of upstream, so they have to store more goods on their own. At the same time, inventory exchange and transshipment cannot be realized in the supply chain, and each can only hold high inventory, which will lead to and intensify the bullwhip effect; lead time. Changes in demand increase with the growth of lead time, and the longer the lead time, the greater the order quantity caused by changes in demand. Enterprises often want to leave a certain amount of room for delivery dates because they have a lot of concerns about the exact time of delivery. , thus holding a longer lead time, so the gradual lengthening of the lead time also causes the bullwhip effect; inventory imbalance. In traditional sales, the supplier generally delivers the goods to the seller, and the inventory responsibility still belongs to the supplier. The settlement will be done after the sale is completed, but the goods are controlled and dispatched by the distributor. This has led to sellers generally tending to increase order quantities to gain control over inventory, thus exacerbating the increase in order demand and leading to the bullwhip effect.