One of the most important issues in the supply chain management is reducing the Bullwhip effect. The bullwhip effect is the
increasing of the fluctuation of demands from customer toward supplier in a supply chain. The reasons for this effect and the solution for its elimination are studied by many researchers up to now. One of the main known reasons is variation of the time value of money that has not been studied in the previous researches. In this paper, at first we analysis the previous works about Bullwhip effect, and then we investigate the role of time value of money an inflation on this effect.