What is the bullwhip effect and why does it occur How can it

What is the bullwhip effect, and why does it occur? How can it be overcome?

Solution

Bullwhip effect is the occurrence of variance of the orders sent to the manufacturer and supplier to that sent to the customers. This large variance is identified in supply chain.

There are many factors that contribute to this effect. They are:-

These are the following measures to overcome bullwhip effect.