The phenomenon in which the variability in the size and timing of orders increases at each stage of the supply chain is known as the ________ effect.

Question

Quizplus · Accepted Answer

This phenomenon is called the "bullwhip effect," where small fluctuations in demand at the consumer end result in larger and larger fluctuations as you move up the supply chain, similar to the way a bullwhip's movements become more exaggerated toward the end of the whip. This effect can lead to inefficient inventory management and increased costs for each stage of the supply chain. Option A is incorrect as there is no term called Zeeman effect, option B is incorrect as the butterfly effect refers to the idea that small changes can have large consequences, but it does not specifically relate to supply chain variability, option D is incorrect as the Stroop effect refers to the difficulty in naming the color of a font when it spells out a different color, which is irrelevant to this question.

The Phenomenon in Which the Variability in the Size and Timing