Giving quantity discounts based on annual volume instead of single order size helps to control which supply-chain issue?

Question

Quizplus · Accepted Answer

Using quantity discounts based on annual volume can help to control the bullwhip effect, which is the phenomenon of demand variability increasing as you move up the supply chain. By encouraging customers to order larger volumes over a longer period of time, it can help to smooth out demand and reduce the potential for the bullwhip effect to occur.

Giving Quantity Discounts Based on Annual Volume Instead of Single