The bullwhip effect describes consistency and continuity in demand for a product as it passes from one entity to the next across the supply chain.

Question

Quizplus · Accepted Answer

The bullwhip effect actually refers to the tendency of demand fluctuations to increase in magnitude as they move upstream in the supply chain, leading to excess inventory, stockouts, and increased costs. It is the opposite of consistency and continuity in demand.

The Bullwhip Effect Describes Consistency and Continuity in Demand for a Product