Information technology plays an important role on the success of different organizations. In today’s competitive environment, there is a need to reduce the cost of products by increasing productivity and quality of products and services. Bullwhip effect is one of the most important issues influencing production planning reducing the efficiency of production planning by increasing unwanted materials, etc. Bullwhip effect occurs for many reasons such as lack of good demand estimation, poor communication between vendors and suppliers, etc. In this paper, we present an empirical investigation based on DEMATEL technique to find the effect of information technology on reducing the bad consequences of bullwhip effect. The study first uses systems dynamic to build a cause-and- effect relationship between different factors influencing bullwhip effect and then using fuzzy DEMATEL, the effect of information technology on bullwhip effect has been confirmed.