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The Bullwhip Effect in supply chains refers to the phenomenon where small fluctuations in customer demand at the retail level lead to progressively larger variations in demand as one moves upstream in the supply chain, from retailers to wholesalers, distributors, and manufacturers. This distortion occurs because each participant in the supply chain reacts to perceived changes in demand rather than actual consumer demand. As a result, minor changes in sales can cause excessive ordering, overstocking, or understocking at different stages, ________ _______ __________ _________ _______ _________.
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