The "Bullwhip Effect" refers to a phenomenon in supply chain management where small fluctuations in consumer demand lead to larger fluctuations in demand at the wholesale, distributor, manufacturer, and supplier levels. This effect can cause inefficiencies, such as excess inventory or stockouts, as each participant in the supply chain overreacts to changes in demand. The Bullwhip Effect is often caused by factors like demand forecasting errors, order batching, and price fluctuations. To mitigate this effect, companies can improve communication, share information across the supply chain, and implement better inventory management practices, ultimately leading to a more stable supply chain.