[1] Stock depth is an important element in the behavior of the Lehman wave.
Firms that are far from the end market thus experience higher variations in growth.
During a Lehman Wave, firms start active destocking.
If the stock depth of a supply chain is large, the variation in growth becomes larger too, explaining why firms upstream in the supply chain experienced heavy growth variations during the Lehman Wave.
When the sales of automobiles suddenly dropped in Q4 2008,[2] the suppliers to the automotive producers not only had to absorb the decline itself, but also the corresponding re-active destocking in the whole supply chain that followed the declining end market.