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

The Bullwhip Effect is a phenomenon in supply chain management where small fluctuations in demand at the consumer level lead to increasingly larger fluctuations in demand at the upstream levels of the supply chain. This effect is named after the way a whip moves—small movements at the handle create large swings at the end. It primarily occurs due to demand forecasting errors, order batching, price fluctuations, and a lack of coordination between different supply chain entities.

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