What is the bullwhip effect in supply chains?
A)It is the point at which the total cost is equal to the total revenue.
B)It is a technique applied to manage projects in a supply chain.
C)It is the sharing of data on a continuous basis between the supplier and customer.
D)It is the increasing upstream supply chain variation resulting from forecasts in a 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 cause larger and larger swings in demand at the wholesale, distributor, manufacturer, and raw material supplier levels. This is often due to the reliance on demand forecasts, which can amplify small changes in consumer demand into larger variations upstream in the supply chain.

What Is the Bullwhip Effect in Supply Chains