Failure to accurately estimate demand and share information among supply chain entities can result in bloated inventory levels due to a cumulative effect of poor information cascading up through a supply chain.This effect is infamously known as the "Bullwhip."

Question

Quizplus · Accepted Answer

This statement accurately describes the phenomenon of the "Bullwhip effect," which occurs when inaccurate information about demand is shared among supply chain partners, causing demand forecasts and inventory levels to become increasingly exaggerated as they move up the supply chain.

Failure to Accurately Estimate Demand and Share Information Among Supply