The bullwhip effect typically results in increased costs, inefficiencies and reduced profitability throughout the supply chain. It causes overforecasting, overproduction, excess inventory, stockouts, and poor customer service. As a result, it hurts the relationships between different stages of the supply chain by creating distrust and confusion.

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The Bullwhip Effect

Question 50

Multiple Choice

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) none of the above
E) both A and C

Correct Answer: