Using varying customer orders to create and update forecasts, production schedules, and purchase requirements represents which of these following activities that causes bullwhip effect?
A)Demand forecast accuracy
B)Order batching
C)Price fluctuations
D)Rationing and shortage gaming
E)None of these

Question

Quizplus · Accepted Answer

Using varying customer orders to create and update forecasts is related to demand forecast accuracy, which can lead to the bullwhip effect if forecasts are not accurate, causing over or underproduction.

Using Varying Customer Orders to Create and Update Forecasts, Production