Which term refers to the decreasing predictability of end-user demand as the channel member's distance from the end-user increases?
A) capacity utilization
B) environmental bounds
C) service gap
D) zero-sum gain
E) bullwhip effect

Question

Quizplus · Accepted Answer

The bullwhip effect refers to the increasing uncertainty and variability in demand as one moves upstream in the supply chain, away from the end-user. As channel members try to forecast demand and manage inventory, they may overreact to small fluctuations, leading to a "whipping" effect that amplifies the variability. This can result in increased costs, inefficiencies, and poor service levels.

Which Term Refers to the Decreasing Predictability of End-User Demand