The Amplication Paradox: How Consumer Demand Volatility Triggers Supply Chain Cascades in Modern Economies

Author : Bhavya Patel

Abstract :The research paper details how viral demand surges on platforms like TikTok and Reddit cause catastrophic supply chain overreactions - using the $50 billion GPU market as a natural experiment. By aggregating four separate datasets - the Google Trends search volume, Newegg sales data, NVIDIA quarterly reports and a subreddit sentiment analysis - we identify a 4.1× amplification effect: a 22% increase in consumer demand (Q3 2021) created a 91% increase in production and then resulted in a $1.2 billion inventory saturation. Furthermore, using our new "hype index," shows that algorithmic propagation of content accounts for 63% of order volatility (p < 0.01), far more than other traditional causations such as pandemic and chip shortages. These results disprove traditional inventory models and present three opportunities for mitigation: (1) platform based demand smoothing techniques, (2) blockchain based pre order systems, and (3) retailer "anti-frenzy" pricing algorithms. This research provides a framework for pre-emptive supply chain protection against hyper-volatile demand in the viral economics environment

Keywords :Viral Demand Surges Trigger Supply Chain Overreactions: Insights from the $50B GPU Market

Conference Name :International Conference on Management, Accounting, Banking, Economics and Business Research (ICMABEBR-25)

Conference Place Ahmedabad, India

Conference Date 26th Jul 2025