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What is Understanding the Bullwhip Effect about?

The bullwhip effect describes how small fluctuations in customer demand at the retail level can be amplified into larger fluctuations as demand moves up the supply chain. When a retailer sells more of a product on a given day and increases their order, the distributor may respond by doubling their order from the manufacturer. The manufacturer then produces an even larger amount to be safe. This causes demand that was 100 units at the retail level to be amplified to 250 units by the time it reaches the manuf

Author

Mahnoor Khalid

Language

EN