What is the bullwhip effect?

In the field of supply chain management, the bullwhip effect refers to the distortion in demand information within the supply chain to the variability in demand orders among supply chain participants. The bullwhip effect refers to increasing swings in inventory in response to shifts in consumer demand in the upstream supply chain.

In other words, it is the phenomenon of upstream variability amplification that indicates a lack of synchronization among supply chain members or participants.

Original source: DynamicPath

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