Sharing of POS data helps reduce the bullwhip effect because it allows each stage of the supply chain to use orders from the previous stage to forecast future demand.

Question

Quizplus · Accepted Answer

Sharing POS (Point of Sale) data directly with all stages of the supply chain allows for real-time demand visibility, reducing the need for each stage to rely solely on orders from the previous stage for demand forecasting, thus helping to mitigate the bullwhip effect.

Sharing of POS Data Helps Reduce the Bullwhip Effect Because