When salespeople need to fill end-of-quarter or end-of-year sales quotas they might use ___________, which creates greater use of safety stock causing the bullwhip effect.
A) Stockpiling
B) Bullwhip ordering
C) Order fulfillment
D) Order batching

Question

Quizplus · Accepted Answer

Order batching, also known as ordering in large quantities or ordering at irregular intervals, is when a company orders more products than needed in order to take advantage of discounts or to meet quotas. This creates a ripple effect up the supply chain, as each company along the way begins to order in larger quantities to meet the increased demand, causing the bullwhip effect. This can lead to excess inventory and higher costs for all parties involved.

When Salespeople Need to Fill End-Of-Quarter or End-Of-Year Sales Quotas