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LogoutThe bullwhip effect on the supply chain occurs when changes in consumer demand causes the companies in a supply chain to order more goods to meet the new demand.The bullwhip effect usually flows up the supply chain, starting with the retailer,wholesaler, distributor, manufacturer and then the raw material supplier. This effect occurs because for goods is based on demand forecasts from companies than the actual demand
The bull whip effect is essentially thus: when someone uses the whip by drawing it in one direction, and then quickly reversing direction- as energy travels down the length of the bull whip, the whip gets smaller, so the energy has more effect on mass of the whip. At the end of the whip, all the energy is released, with the mass of the whip now traveling in the opposite direction. This creates even more acceleration and typically causes the crack, which is caused by the end of the whip traveling faster than the speed of sound, for a split second. This creates a little sonic boom.