The bullwhip effect
A)positively impacts performance at every stage.
B)hurts the relationships between different stages of the supply chain.
C)enhances the relationships between different stages of the supply chain.
D)results in improved on-time order delivery.

Question

Quizplus · Accepted Answer

The bullwhip effect refers to the phenomenon in which small fluctuations in demand at the consumer level can cause significant fluctuations in demand at upstream levels of the supply chain. This can result in overproduction, stockouts, and other inefficiencies that can damage relationships between different stages of the supply chain. Therefore, it hurts the relationships between different stages of the supply chain.

The Bullwhip Effect