The bullwhip effect explains the amplification of demand at various stages of the supply chain.

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The bullwhip effect is a well-known phenomenon in supply chain management whereby small changes in demand at the consumer level can lead to significant changes in demand further up the supply chain, all the way to the suppliers. This effect is often caused by information distortion, as orders are passed from one stage of the supply chain to the next. As a result, suppliers may overreact to changes in demand and end up producing too much or too little, leading to inefficiencies in the system.

The Bullwhip Effect Explains the Amplification of Demand at Various