Offering discounts to buyers is associated with which cause of the bullwhip effect?
A) Demand forecast updating
B) Price fluctuations
C) Order batching
D) Rationing and shortage gaming

Question

Quizplus · Accepted Answer

Offering discounts to buyers can lead to price fluctuations, which can cause the bullwhip effect. This is because buyers may order more than they need at the discounted price, leading to an increase in demand that is not reflective of actual market conditions.

Offering Discounts to Buyers Is Associated with Which Cause of the Bullwhip