The general tendency toward increasing variation in demand and inventory levels as we move further away from the end customer in the supply chain is referred to as

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The bull-whip effect is a well-known phenomenon in supply chain management that refers to the tendency of demand variability to increase as we move further upstream in the supply chain. The effect is so named because it resembles the way a flick of a bullwhip tends to grow larger and more exaggerated the further it gets from the point of origin. This effect can result in excess inventory, stockouts, and poor customer service if not managed effectively.

The General Tendency Toward Increasing Variation in Demand and Inventory