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Forrester Effect (Bullwhip Effect)

The Forrester Effect (also Bullwhip Effect) show the relationship between the increase of the variability of the client demand and the lenght of the supply chain; this effect is bigger as we move far away from the client demand upstream in the supplychain.

The main cause of the effect is the limited anaylisis capacity of the suppliers supply chain responsables; the consequences of this is a low efficiency in the management of the supply chain; the low effciency increase  proportionally because of: the distance between the final consumer and the supply chain logistics distribution and the lead time that every supplier need to fullfil the customer demand.