What is the bullwhip effect?
A) Views all areas up and down the supply chain in real time
B) Uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain while reducing inventory
C) Ensures supply chain cohesion by automating the different activities of the supply chain
D) Occurs when distorted product-demand information ripples from one partner to the next throughout the supply chain

Question

Quizplus · Accepted Answer

The bullwhip effect refers to the phenomenon where variations in demand at the consumer end of a supply chain are amplified as they move back through the supply chain, leading to greater fluctuations in orders and inventory levels than the variations in consumer demand would warrant. This distortion can cause inefficiencies and increased costs throughout the supply chain.

What Is the Bullwhip Effect