USF assistant professor of instruction in supply chain management and director of the Supply Chain Innovation Lab, Seckin Ozkul, joined ABC Action News to discuss rising gas prices.
 
“The pandemic became a simple supply and demand issue,” Ozkul explained. Most of us were spending more time at home, uncertain about the events that would unfold moving forward, which resulted in a cratering demand for oil and many other goods. Companies halted production to match the decline in demand. The breakthrough came when we finally started making some sense of the virus." Ozkul goes on to add that “suddenly, the demand spiked back up to normal.”
 
This was only the beginning of what is termed "the bullwhip effect." Volatility is challenging for consumers because “unfortunately, in operations management and operations, you cannot spike up production so quickly like that. So that is what we are observing.” It is a chase of supply catching up with a constantly changing and unpredictable demand.
 
To watch the full airing, click here.