What is the bullwhip effect?
A) A fluctuation in demand downstream from a number of suppliers to a customer
B) A fluctuation in demand upstream to a number of suppliers following a small change in demand from the customer
C) A variable inventory cost fluctuation throughout the supply chain
D) A variable inventory quality fluctuation throughout the supply chain

Question

Quizplus · Accepted Answer

The bullwhip effect refers to the phenomenon where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels. This is due to the amplification of demand signals as they move upstream in the supply chain.

What Is the Bullwhip Effect