The phenomenon that magnifies the variability in order quantities for goods as orders move through the supply chain from the customer to the producer is called the bullwhip effect.

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This statement is true. The bullwhip effect is a well-researched logistical phenomenon that occurs when small fluctuations in customer demand can cause a chain reaction in the supply chain, leading to larger and larger swings in inventory levels and production quantities as information is distorted and amplified at each stage of the supply chain.

The Phenomenon That Magnifies the Variability in Order Quantities for Goods