A large manufacturing company offered a 40 percent discount on all its products for a short period of time.As a result,the retailers ordered and stocked more products than needed in order to cash in on the opportunity.This scenario exemplifies the ________.

Question

Quizplus · Accepted Answer

The scenario described exemplifies the bullwhip effect, which occurs when small changes in customer demand lead to large fluctuations in orders placed upstream in the supply chain. The discount offer caused retailers to over-order, leading to a spike in demand further up the supply chain, resulting in excess inventory and inefficiencies.

A Large Manufacturing Company Offered a 40 Percent Discount on All