The large fluctuations of bullwhip effect force organisations to stock fewer inventories than needed.

Question

Quizplus · Accepted Answer

The large fluctuations of bullwhip effect often lead to increased inventory levels, as companies try to anticipate demand variability and avoid stockouts. Therefore, organisations end up stocking more inventories than actually needed, which can result in increased holding costs and inefficiencies in supply chain management.

The Large Fluctuations of Bullwhip Effect Force Organisations to Stock