Which of the following can happen as a result of the bullwhip effect?
A) Increase in defective products
B) Excess costs for each firm in a supply chain
C) Decreased levels of safety stock
D) Quicker distribution to warehouses

Question

Quizplus · Accepted Answer

The bullwhip effect can lead to excess costs for each firm in a supply chain due to the fluctuation in demand and inefficient inventory management.

Answer: A and C 
 The bullwhip effect can also lead to an increase in defective products as there is a greater chance of errors occurring when demand is unpredictable. Additionally, decreased levels of safety stock can occur as firms try to minimize the costs associated with excess inventory.

Answer: D 
 Quicker distribution to warehouses is not a typical result of the bullwhip effect, as it is more focused on the inefficient management of inventory and demand fluctuations.

Which of the Following Can Happen as a Result of the Bullwhip