ENTREPRENEURSHIP

Detailed explanation-1: -The bullwhip effect is a supply chain phenomenon describing how small fluctuations in demand at the retail level can cause progressively larger fluctuations in demand at the wholesale, distributor, manufacturer and raw material supplier levels. The effect is named after the physics involved in cracking a whip.

Detailed explanation-2: -Supply chain errors that contribute to the bullwhip phenomenon include lack of communication and coordination, batch ordering, price fluctuations, overreaction to backlogs, errors in forecasting, inflated orders, and product promotions.

Detailed explanation-3: -Supply chains start and stop unpredictably because of a number of factors outside of our control: Weather hazards, labor shortages, supply chain kinks… you name it. These fluctuations can cause chaos at a distribution center (DC), as they make forecasting and scheduling that much more difficult.