One way to reduce the bullwhip effect is for supply chain members to
A)make ordering decisions independently of each other.
B)create demand forecasts independently of other supply chain members.
C)share demand forecasts with other supply chain members.
D)restrict information flows between supply chain members.

Question

Quizplus · Accepted Answer

Sharing demand forecasts with other supply chain members can help reduce the bullwhip effect by improving visibility and communication throughout the supply chain. When each member of the supply chain has a better understanding of the demand for the product, they can make more informed ordering decisions and adjust production accordingly. This can help to avoid situations where one member is overstocked while another is understocked, which leads to inefficient use of resources and increased costs for the entire supply chain. By working together to share demand forecasts, supply chain members can make more accurate predictions, reduce the bullwhip effect, and improve overall supply chain performance.

One Way to Reduce the Bullwhip Effect Is for Supply