The signal lag is a huge problem. When you go a few stages through a supply chain, a gradual variation in consumer demand turns into huge whiplashes in demand.

The signal lag is a huge problem. When you go a few stages through a supply chain, a gradual variation in consumer demand turns into huge whiplashes in demand. This is called "the bullwhip effect" and is a huge problem in supply chain management. See https://www.cips.org/knowledge/procurement-topics-and-skills/operations-management/bullwhip-effect-in-supply-chain/ https://www.cips.org/knowledge/procurement-topics-and-skills... for more.