In supply chain management, what term describes the distortion and amplification of demand variability as information moves up the supply chain?

Explanation

• The Bullwhip Effect occurs when small fluctuations in retail customer demand generate increasingly larger swings in demand upstream for distributors, manufacturers, and suppliers.
• Causes include order batching, price fluctuations, lead time delays, and inaccurate demand forecasting.
• Mitigating the bullwhip effect requires real-time information sharing, point-of-sale integration, and vendor-managed inventory.