The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain.

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The bullwhip effect is a well-known phenomenon in supply chain management where small changes in demand at the retail level can lead to large variations in demand further up the supply chain. This results in increasing fluctuations in orders, inventory levels, and production schedules.

The Bullwhip Effect Refers to the Increasing Fluctuations in Orders