The Forrester effect shows that inaccuracies increase further upstream in the supply chain.

Question

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The Forrester effect, also known as the bullwhip effect, shows that small fluctuations in demand downstream in the supply chain can cause larger fluctuations upstream, resulting in increased inaccuracies and inefficiencies. Therefore, inaccuracies do increase further upstream in the supply chain due to the Forrester effect.

The Forrester Effect Shows That Inaccuracies Increase Further Upstream in the Supply