Which of the below represents the bullwhip effect?
A)Organisations know about employee events triggered downstream in the supply chain
B)Customers receive distorted product demand information regarding sales information
C)Distorted product-demand information ripples from one partner to the next throughout the supply chain
D)The ability to view all areas up and down the supply chain

Question

Quizplus · Accepted Answer

The bullwhip effect is a phenomenon in supply chain management where small changes in consumer demand can result in large swings in demand further up the supply chain. This effect can cause inventory shortages or excess, production scheduling issues, and ultimately, increased costs. One of the main causes of the bullwhip effect is distorted product-demand information that ripples from one partner to the next throughout the supply chain. Option C accurately describes this. Option A talks about downstream employee events, which is not related to the bullwhip effect. Option B talks about distorted product demand information, but only mentions customers receiving it, not the ripple effect throughout the supply chain. Option D talks about supply chain visibility, but doesn't address the concept of the bullwhip effect.

Which of the Below Represents the Bullwhip Effect