John is a supply chain manager at a factory called JacketZ. The factory produces a winter jacket and sells to a wholesalers. The wholesalers then sells the jackets to a retailer. John collected information about the demand for the jacket, orders places by the retailer to the wholesaler, and orders placed by the wholesaler to the factory. He then calculated amplification factors at different stages of the supply chain as follows:

Amplification factor at the retailer: $2\mathrm{.}05$

Amplification factor at the wholesaler: $1\mathrm{.}92$

Which of the following statements is correct?

Group of answer choices

The supply chain suffers from the bullwhip effect because amplification factor at the retailer is higher than $1.$

The supply chain does not suffer from the bullwhip effect because amplification factor at the wholesaler is higher than $1.$

The supply chain suffers from the bullwhip effect because amplification factor at the retailer is higher than the wholesaler.

The supply chain does not suffer from the bullwhip effect because amplification factor at the wholesaler is lower than the retailer.