The value of better information coordination will be linked to the amount of variability introduced into the supply chain as a result of the bullwhip effect.

Question

Quizplus · Accepted Answer

The bullwhip effect is caused by the lack of information coordination between different levels of the supply chain, which results in amplification of demand variability. Therefore, better information coordination should help reduce the bullwhip effect and the associated variability in the supply chain.

The Value of Better Information Coordination Will Be Linked to the Amount