The general tendency toward increasing variation in demand and inventory levels as we move further away from the end customer in the supply chain is referred to as
A) bull- whip effect.
B) internally generated shortages.
C) capacity cushions.
D) continuous replenishment.

Question

Quizplus · Accepted Answer

The bull-whip effect describes the phenomenon where small fluctuations in demand at the consumer level cause progressively larger fluctuations in demand at the wholesale, distributor, manufacturer, and raw material supplier levels.

The General Tendency Toward Increasing Variation in Demand and Inventory