The bullwhip effect could be reduced if all members of the supply chain would use demand data from the point of the supply chain closest to the customer.

Question

Quizplus · Accepted Answer

By using demand data from the point of the supply chain closest to the customer, all members of the supply chain have a more accurate understanding of customer demand, which can reduce the exaggeration of demand fluctuations as it moves up the supply chain, known as the bullwhip effect.

The Bullwhip Effect Could Be Reduced If All Members of the Supply