Which of the following represents the bullwhip effect?
A) Organizations know about employee events triggered downstream in the supply chain
B) Customers receive distorted product demand information regarding sales information
C) Distorted product-demand information ripples from one partner to the next throughout the supply chain
D) The ability to view all areas up and down the supply chain

Question

Quizplus · Accepted Answer

The bullwhip effect refers to the phenomenon where variations in demand at the consumer end of a supply chain are amplified as they move back through the chain, leading to greater fluctuations in orders and inventory levels than the variations in consumer demand would warrant. This is caused by each entity in the supply chain making decisions based on the demand they see, which can be distorted by the time it reaches them, leading to inefficiencies and excess inventory or shortages.

Which of the Following Represents the Bullwhip Effect