Ordering large quantities of goods from suppliers on an infrequent basis to reduce order and transportation costs 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

Order batching refers to the practice of ordering large quantities infrequently, which can lead to variability in demand and contribute to the bullwhip effect.

Ordering Large Quantities of Goods from Suppliers on an Infrequent