Juicebox Inc., a fruit juice processing company, has been facing irregular demand patterns for the last two years. These large fluctuations have created a bullwhip effect for the company. Which of the following steps will Juicebox Inc. most likely take to cope with this effect?
A) carry larger inventories
B) follow the just-in-time inventory policy
C) reduce its annual production of juice
D) reduce the number of employees to cut costs

Question

Quizplus · Accepted Answer

Carrying larger inventories is a common strategy to cope with the bullwhip effect, as it helps to buffer against demand fluctuations and ensure product availability.