As you advance up the supply chain, it refers to increasing swings in inventory in response to shifts in customer demand.
The bullwhip effect is a phenomenon in the supply chain that describes how smaller changes in demand at the retail level can lead to larger changes in demand at the wholesale, distributor, manufacturer, and raw material supplier levels.
The Bullwhip Effect occurs in the supply chain and distribution channels when forecasts reveal inefficiencies in the supply chain. This typically occurs when retailers become extremely receptive to consumer demand and, as a result, raise consumer expectations, triggering a chain reaction.
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