In this study, we investigate the repercussions of backorders on supply chain performance, with a particular focus on the bullwhip effect. By employing simulation techniques, we evaluate how the presence of backorders influences key performance indicators such as order variance, inventory levels across different stages, and total supply chain inventory. The findings of this study indicate that operating within a backorder environment exacerbates the bullwhip effect, leading to heightened variability in orders and increased inventory levels compared to scenarios involving lost sales. Statistical tests further substantiate these observations. This research sheds light on the critical role of backorders in supply chain dynamics. It underscores the importance of effective management strategies to mitigate the adverse effects of the bullwhip effect.