A bullwhip effect occurs more often when the sole transmission of information occurs by handoffs from one link of the chain to the next.

Question

Quizplus · Accepted Answer

The bullwhip effect is more likely to occur when information about customer demand is not transmitted efficiently or accurately through the supply chain. Handoffs between different links in the chain can introduce delays, miscommunications, and other errors that can exacerbate the bullwhip effect. Therefore, option A is true.

A Bullwhip Effect Occurs More Often When the Sole Transmission