The bullwhip effect ________.
A) is not related to erratic consumer demand
B) forces distributors, manufacturers, and suppliers to carry smaller inventories that do not have the capacity to meet requirements
C) increases the overall profitability of the supply chain
D) can be eliminated by restricting access to consumer-demand information to only a few participants in the supply chain

Question

Quizplus · Accepted Answer

The bullwhip effect is related to erratic consumer demand, as it refers to the phenomenon where small fluctuations in consumer demand cause larger fluctuations in orders placed upstream in the supply chain.

The Bullwhip Effect ________