A distortion of information about the demand for a product as it passes from one entity to the next across the supply chain is called the ________ effect.
A) network
B) bullwhip
C) ripple
D) whirlpool

Question

Quizplus · Accepted Answer

The bullwhip effect refers to a phenomenon in which small fluctuations in demand at the retail level result in progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels of the supply chain. This is due to distortions in information as it is passed along the chain, such as order batching, price fluctuations, and forecasting errors. The result is increased inefficiencies, excess inventory, and higher costs throughout the supply chain.

A Distortion of Information About the Demand for a Product