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 caused by distorted information flowing up or down the supply chain. In such a scenario, the possibility of distortion increases when the transmission of information occurs through human interaction or manual processes. This can lead to inaccurate forecasting at different levels of the supply chain, leading to the bullwhip effect. Hence, it is true that the bullwhip effect occurs more often when the sole transmission of information occurs by handoffs from one link of the chain to the next.

Bullwhip Effect Occurs More Often When the Sole Transmission of Information