From Demand to Distortion: Unraveling the Bullwhip Effect in Indian Supply Chains

Md Ibrahim Anas Ibrahim; Divya Prakash Singh; Rohit Kumar; Md. Quadir Shamim

doi:10.36948/ijfmr.2026.v08i03.77469

From Demand to Distortion: Unraveling the Bullwhip Effect in Indian Supply Chains

Author(s)	Md Ibrahim Anas Ibrahim, Divya Prakash Singh, Rohit Kumar, Md. Quadir Shamim
Country	India
Abstract	The bullwhip effect is a significant issue in supply chain management and it impacts the supply of goods from manufacturer to the end consumer. This effect occurs when a small shift in market demand causes a greater variation in orders at the various supply chain nodes (retailer, wholesaler, distributor, manufacturer and supplier). To put it simply, when the real market demand is not communicated well with all members of the supply chain, each player in the chain starts taking decisions on assumptions resulting in over-ordering or under-ordering. This results in over-stock, stock-out, shipment delay, higher cost of operation and unsatisfactory customer service. The Indian supply chain is huge and multifaceted with industries such as FMCG, farm sector, medicines, automobiles, e-commerce, and retail. The presence of several middlemen, long distance transportation networks, uneven demand across regions, celebration of festivals, transportation infrastructure issues and unexpected market fluctuations aggravate the bullwhip effect in the Indian supply chain. The issue was prominent during the COVID-19 pandemic when panic buying, scarcity of products and transportation issues disrupted business activities. This research paper aims to explore the reasons behind the bullwhip effect in the Indian supply chain and to suggest methods to control the effect. The research is conducted using secondary data from journals, books, reports and recent case studies of companies. The research reveals that inaccurate demand prediction, order batching, promotional schemes, lack of communication, shortage gaming, and long lead time are the key causes of the bullwhip effect. It also proposes that improved forecasting techniques, real-time information communication, ERP systems, collaborative planning and IT can assist enterprises to reduce demand variability, and enhance supply chain performance in India.
Keywords	Bullwhip Effect, Supply Chain Management, Demand Forecasting, Inventory Management.
Field	Sociology > Administration / Law / Management
Published In	Volume 8, Issue 3, May-June 2026
Published On	2026-05-07
DOI	https://doi.org/10.36948/ijfmr.2026.v08i03.77469

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From Demand to Distortion: Unraveling the Bullwhip Effect in Indian Supply Chains

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