ENTREPRENEURSHIP

Detailed explanation-1: -Bullwhip effect. Occurs when distorted product demand information passes from one entity to the next throughout the supply chain. Happens without good visibility. Supply chain change. Ripples throughout entire supply chain which will magnify the issue and cause excess inventory.

Detailed explanation-2: -The bullwhip effect is the distortion of information about the demand for a product as it passes from one entity to the next across the supply chain.

Detailed explanation-3: -This variation in demand orders is called the information distortion. When this variation in demand orders are used for inventory levels, than these levels are bigger than the actual demand is in the supply chain for the products. Dealing with the information distortion has different causes.

Detailed explanation-4: -The customer demand distortion that travels along the supply chain is defined as bullwhip effect (also known as the Forrester effect). Imagine the customer holding a giant whip and giving it a bash, the ripples of the whip increase further down the line (i.e., supply chain).