Which of the following is the prescribed remedy when the bullwhip effect is caused by order batching?
A) share demand information
B) channel coordination of lot sizes
C) increase capacity
D) price stabilization
E) allocate orders based on past demand

Question

Quizplus · Accepted Answer

When the bullwhip effect is caused by order batching, the best remedy is to implement channel coordination of lot sizes. This means coordinating the order quantities between different stages of the supply chain to reduce variability and decrease the impact of order batching. Implementing lot-size coordination requires the sharing of demand information and coordination between channel members, but it is an effective way to reduce the bullwhip effect caused by order batching.

Which of the Following Is the Prescribed Remedy When the Bullwhip