Abstract: The paper considers a two echelon supply chain which contains a single supplier and one retailer.It studies bullwhip effect and values of the information sharing between the supplier and the retailer under ARIMA(0,1,1)demand,and compares the differences before and after information sharing.The results show that information sharing can bring the benefits such as mitigating bullwhip effect,decreasing on hand inventories and reducing the cost for the supplier.

Key words: supply chain, bullwhip effect, information sharing, ARIMA, inventory