The document discusses the bullwhip effect in supply chains. It describes how demand variability increases as it moves up the supply chain from retailers to manufacturers. This occurs through factors like order batching, shortage gaming, and demand forecast inaccuracies. Countermeasures to reduce the bullwhip effect include vendor managed inventory programs, electronic data interchange for ordering, and sharing demand information. The bullwhip effect can increase costs and lower revenues for all members of the supply chain.