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you need to understand that there is a negative side to both the economies of scale and batching and that is referred to as the bullwhip effect what is the bull Loop effect the bull Loop effect is a supply chain phenomenon where demand changes at the end of the supply chain lead to inventory fluctuations along the chain for instance if you are selling uh say juice a Twitter level and normally sell 10 bottles of a given type of juice in a day and suddenly you sell double that which means you end up ordering double raw materials or in this case double fruits or activities or the juice itself how will the oil cell react to this well theyre also going to double their stock to avoid running out of stock and the manufacturer decides to manufacture more of that particular brand of juice so think of it easy that one small action at the end of the supply chain has led to a ripple effect all the way to the manufacturers level in the supply chain it becomes a problem since the exaggerated fluct
