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Supply Requirement (Key Issue in supply chain (Shorter lead time, less…
Supply Requirement
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Bullwhip effect is a distribution channel phenomenon where forecast yield supply chain inefficiencies. It refers to increasing swings in inventory in response to shifts in customer demand as one moves further up the supply chain. .
It is bad in logistics because of the inconsistent order from the lower part of the supply chain develop to be more distinct higher up in the supply chain. These variance can interrupt the smoothness of supply chain process because each link in the supply chain will either over or under estimate the demand.