Bullwhip Effect

An extreme change in the supply position upstreamPrincipal direction of movement for customer order... in a supply chain(1) Starting with unprocessed raw materials and en... generated by a small change in demand downstreamOne or more companies or individuals who participa... in the supply chain. Inventory1) Raw materials, work in process, finished goods,... can quickly move from being backordered to being in excess. This is caused by the serial nature of communicating orders up the chain with the inherent transportation delays of moving productSomething that has been or is being produced. down the chain. The bullwhip effect can be eliminated by synchronizing the supply chain.