What is the Forrester effect?
The Forrester effect, also known as the Bullwhip effect, is a supply chain phenomenon where small fluctuations in consumer demand can create amplified fluctuations in orders placed upstream in the supply chain. This can lead to inefficiencies, inventory imbalances, and increased costs as companies try to adjust to these unpredictable variations in demand. It is important for companies to understand and mitigate the Forrester effect to maintain a more efficient and responsive supply chain.
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