Demand Amplification
Supply Chain
Demand Amplification
Increase in demand variability as signals move upstream through a supply chain; closely related to the bullwhip effect.
Examples
- 01Demand amplification makes a stable retail demand of 1,000 units a week look like swings between 600 and 1,800 at the component supplier.
- 02The monthly supply review tracks demand amplification by comparing order variability at each level of the chain.
- 03Smaller, more frequent orders cut demand amplification, so suppliers can plan with less safety stock.