Changes

The '''Bullwhip effect''' (also know as the "'''whiplash'''" or the "'''whipsaw'''" effect) refers to a [[supply chain]] management issue relating to inventory management and market demand projection.  The metaphorical bullwhip represents demand, with the end consumer "holding" the handle. When the consumer market demand increases for a specific product, that increase in demand is felt down throughout the supply chain, in increasing severity from one supplier to the next. There are usually about six or seven inventory points between the supplier of raw materials, to the end consumer.<ref name="marketing91">https://www.marketing91.com/bullwhip-effect/</ref> When the expected flow of product is disrupted by a small amount, that disruption tends to be amplified to upstream suppliers. This can happen for a number of reasons, but typically the cause falls into one of these categories:

The '''Bullwhip effect''' (also know as the "'''whiplash'''" effect) refers to a [[supply chain]] management issue relating to inventory management and market demand projection.  The metaphorical bullwhip represents demand, with the end consumer "holding" the handle. When the consumer market demand increases for a specific product, that increase in demand is felt down throughout the supply chain, in increasing severity from one supplier to the next. There are usually about six or seven inventory points between the supplier of raw materials, to the end consumer.<ref name="marketing91">https://www.marketing91.com/bullwhip-effect/</ref> When the expected flow of product is disrupted by a small amount, that disruption tends to be amplified to upstream suppliers. This can happen for a number of reasons, but typically the cause falls into one of these categories:

*Forecast errors (Inaccurate estimation of future demand)<ref name="tradegecko">https://www.tradegecko.com/inventory-management/bullwhip-effect</ref>

*Forecast errors (Inaccurate estimation of future demand)<ref name="tradegecko">https://www.tradegecko.com/inventory-management/bullwhip-effect</ref>

*Order batching (larger, less frequent orders from suppliers can cause these suppliers to estimate demand poorly)<ref name="tradegecko">https://www.tradegecko.com/inventory-management/bullwhip-effect</ref>

*Order batching (larger, less frequent orders from suppliers can cause these suppliers to estimate demand poorly)<ref name="tradegecko">https://www.tradegecko.com/inventory-management/bullwhip-effect</ref>