The use of varying customer orders to create and update forecasts is associated with which cause of the bullwhip effect?
A) Demand forecast updating
B) Price fluctuations
C) Order batching
D) Rationing and shortage gaming

Question

Quizplus · Accepted Answer

Varying customer orders can lead to frequent updates in demand forecasts, which can cause the bullwhip effect by amplifying small fluctuations in demand. This is known as the demand forecast updating cause of the bullwhip effect.

The Use of Varying Customer Orders to Create and Update