build an analysis on the example below by offering another implication that they may have not thought of, or by discussing some of the complications that technology can cause throughout the supply chain.

The bullwhip effect is described as the phenomenon that demand variability increases up the supply chain from customer to supplier and the variation in demand is larger the further away a company is from the end customer (Nienhaus, Ziegenbein, & Schoensleben, 2007). The effect is most often caused by the overreaction of demand from the consumer to supplier to manufacturer or the lack of visibility up the supply chain.

One way to reduce the likelihood of the bullwhip effect is to maintain communication between each area of the supply chain and accurately relay information about current and future demand from the consumer. "Accurately forecasting the demand and passing that information down the supply chain leads to a more controlled production process" (Lazzari, 2019). Another way to reduce the chances of a bullwhip effect is to make sure that retailers have continued and consistent sales. When a retailer uses a "big sale" approach, it causes a falsely elevated demand in the supply chain to fill the increased demand against a sale. When the sale ends, the demand ceases and the supply chain is overproducing (Lazzari, 2019).

Utilizing software systems and technology can ultimately prevent any chances of the bullwhip effect. Using technology to implement controls and track every aspect of production, distribution and sales can quickly identify supply chain bloating before it becomes a problem. Technology can be used to forecast and adjust before the problem exists and will further improve efficiencies in the supply chain. Having and maintaining good relationships throughout the supply chain will help with communicating and sharing information to help reduce and prevent the inefficiencies that arise from bullwhip.