The situation in which fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to suppliers is known as
A)market fluctuations.
B)the whiplash effect.
C)the bullwhip effect.
D)the butterfly effect.

Question

Quizplus · Accepted Answer

The term for this situation is the bullwhip effect. It is named after the way a long bullwhip moves when it is flicked, with small movements at the handle creating larger movements at the end of the whip. Similarly, small fluctuations in customer demand can lead to larger and larger fluctuations in orders as they move up the supply chain. This can lead to inefficiencies and excess inventory.

The Situation in Which Fluctuations in Orders Increase as They