Companies that make decisions that appear to be in their own best interests can cause the bullwhip effect.

Question

Quizplus · Accepted Answer

This is because decisions made by companies may cause fluctuations in demand that ripple through the supply chain, leading to increased inventories, production variations, and backorders, ultimately amplifying the effect further up the chain. Companies may be following their own incentives or objectives, but the net effect can be detrimental to the entire supply chain.

Companies That Make Decisions That Appear to Be in Their