Impact of COVID-19 on The Bullwhip Effect Across U.S. Industries

Abstract: The Bullwhip Effect, describing the amplification of demand variability up the supply chain, poses significant challenges in Supply Chain Management. This study examines how the COVID-19 pandemic intensified the Bullwhip Effect across U.S. industries, using extensive industry-level data. By focusing on the manufacturing, retailer, and wholesaler sectors, the research explores how external shocks exacerbate this phenomenon. Employing both traditional and advanced empirical techniques, the analysis reveals that COVID-19 significantly amplified the Bullwhip Effect, with industries displaying varied responses to the same external shock. These differences suggest that supply chain structures play a critical role in either mitigating or intensifying the effect. By analyzing the dynamics during the pandemic, this study provides valuable insights into managing supply chains under global disruptions and highlights the importance of tailoring strategies to industry-specific characteristics.