The Bullwhip Effect

In a supply chain, the bullwhip effect occurs when each party gradually escalates an initially small spike in demand. Each member of the supply chain overcompensates for this demand with excess product, leading to increased production, inaccurate demand forecasting, and inconsistent inventories. The bullwhip effect can quickly get out of control and hit every part of the supply chain with adverse effects. Learn what the best methods and resources are for fighting the bullwhip effect.