The bullwhip effect describes the situation in which variance in demand decreases as you move from downstream to upstream in a supply chain.

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The bullwhip effect actually describes the opposite phenomenon, in which small fluctuations in demand at the downstream (customer-facing) end of a supply chain can be amplified and magnified as they move upstream towards suppliers, resulting in larger and larger swings in inventory and production requirements. This phenomenon can be exacerbated by delays in communication, inventory stockpiling, and other factors.

The Bullwhip Effect Describes the Situation in Which Variance in Demand