If supply chain A has more levels than supply chain B, then the bullwhip effect will likely impact supply chain B more than supply chain A.

Question

Quizplus · Accepted Answer

The bullwhip effect occurs when small changes in demand at the consumer level result in increasingly large changes in demand at higher levels of the supply chain. The effect is typically more pronounced in longer and more complex supply chains with more levels. Therefore, if supply chain A has more levels than supply chain B, then it is more likely that supply chain A will be impacted more by the bullwhip effect than supply chain B.

If Supply Chain a Has More Levels Than Supply Chain