The distortions in a supply chain caused by changes in customer demand, resulting in large swings in inventory levels as the orders ripple upstream from the retailer to the distributor and manufacturer, is referred to as the ________.
A)accelerator effect
B)bullwhip effect
C)loyalty effect
D)local multiplier effect

Question

Quizplus · Accepted Answer

The distortions in a supply chain caused by changes in customer demand, resulting in large swings in inventory levels as the orders ripple upstream from the retailer to the distributor and manufacturer, is commonly referred to as the bullwhip effect.

The Distortions in a Supply Chain Caused by Changes in Customer