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Smart Talks with IBM and Malcolm Gladwell - Managing supply chain volatility in the height of the shopping season

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What Is the Bull Whip Effect?

The bullwhip effect is a real problem that we have at the moment. A what is the bull whip effect? It says, am that i i can see a demand signal for maybe extra five units. But when my distributor says, oh, they're going to sell an extra five units, but they typically get it wrong,. so they put that back on to their supply and say, hey, now this company's now gongis going extra ten units. And then their supply says oll they typically, i i don't want to go short here, so wel make it 50 units. Since before you know it, my five units of demand further down the supply train is 50

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