Understanding the Bullwhip Effect: Unraveling the Hidden Consequences of Decision-Making

Introduction The Bullwhip Effect mental model describes the amplification of demand fluctuations along the supply chain, leading to exaggerated inventory fluctuations and inefficiencies. This phenomenon highlights the intricate relationship between decision-making processes and the cascading effects they can have on a broader system. Anchored in human psychology, the Bullwhip Effect is prevalent in our day-to-day […]