This increase in the variability of

This increase in the variability of orders at each stage in a supply chain is often called
the bullwhip effect. Bullwhip effect causes excessive swings in different demand or
inventory-stocking points throughout the supply chain. This swing is also likely to be
wider upstream in the supply chain.
Owing to the excessive swings and the amplification of demands, the bullwhip
effect is a major concern for participants involved in a supply chain. The increased