The phenomenon that occurs when small changes in demand occur, the variation in production and inventory levels becomes increasingly amplified upstream at distribution centers, factories, and suppliers, that results in unnecessary costs and difficulties in managing material flow is known as:
A) bullwhip effect.
B) upstream variation.
C) simulation.
D) under-dumping.

Question

Quizplus · Accepted Answer

The phenomenon described in the question is commonly known as the bullwhip effect, where small changes in demand result in amplified variations in production and inventory levels upstream in the supply chain. This can create unnecessary costs and challenges in managing material flow.

The Phenomenon That Occurs When Small Changes in Demand Occur