What is Bullwhip effect? Explain the net impact of the Bullwhip Effect on Supply Chains.

The Bullwhip Effect is a phenomenon observed in supply chains where small fluctuations in demand at the consumer level can lead to amplified variations in orders placed upstream in the supply chain. This effect, analogous to the motion of a bullwhip, manifests as exaggerated oscillations in inventory levels and production schedules as information is transmitted upstream from retailers to suppliers.

Several factors contribute to the Bullwhip Effect:

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