Mitigating Demand Fluctuations in Long Supply Chains Through Dataspaces

This paper investigates the implementation of dataspace technologies in complex supply chains to mitigate the bullwhip effect, i.e., a phenomenon where demand variability amplifies as it propagates along the supply chain. Using a simplified linear supply chain simulator, the study compares two scenarios: a limited transparency case where supply chain partners operate with restricted information, and a full transparency scenario enabled by dataspace technology that allows real-time data sharing. The results demonstrate that dataspace-enabled transparency, combined with Demand-Driven Material Requirements Planning (DDMRP), significantly reduces demand amplification and inventory level fluctuations across the supply chain.