TThe main focal point of this study is to categories the reasons of Bullwhip Effect by fishbone diagram and tries to reduce bullwhip phenomenon. Three steps are followed here to resolve bullwhip effect. First, identify the causes. Fishbone diagram helps to classify the core reasons of it. The second part is to analyze the causes and discuss the effect of these causes and try to recommend some probable solutions. The third and last part is to observe the practical situation of bullwhip effect. Here, a case study is to be studied and apply the following solution of this supply chain system and observe how these solutions resolve the bullwhip phenomenon.