Abstract: The development of smart supply chain has alleviated the bullwhip effect in traditional supply chain. Taking the supply chain consisting of one manufacturer and one retailer as the research object, the game models are established for four different situations of whether SMEs invest in digital technologies to explore the impact of bullwhip effect on product pricing and decision-making of digital technology level, and compare the profits under different models. The results show that the supply chain members who invest in digital technologies will set a higher level to weaken the negative impact of the bullwhip effect; if the manufacturer and retailer separately invest in digital technologies, it will have a positive impact on the supply chain, but if the manufacturer and retailer invest in digital technology together, it may reduce supply chain performance.

Key words: smart supply chain, bullwhip effect, pricing strategy, digital technologies