The bullwhip effect is a distribution channel phenomenon that shows instabilities and fluctuations in product/orders within a supply chain. Also called "the Forrester effect," it shows inefficiencies in inventory levels caused by demand distortions and inaccurate forecasting. The reason this is called a 'bullwhip effect' is because the amplitude of a whip continues to increase during oscillation. As the wave moves away from the source, the deviations in wave pattern increase. In terms of supply chains, this means that growing or waning customer demand has direct implications and influence over inventory levels.