The bullwhip effect is a result of uncertainties in the demand forecast.

Question

Quizplus · Accepted Answer

The bullwhip effect occurs when small changes in customer demand at the retail level cause progressively larger changes in demand as orders are processed upstream through the supply chain. These fluctuations in demand are often the result of inaccurate demand forecasts and other uncertainties in the market, leading to overproduction or underproduction of goods. Therefore, the statement is true.

The Bullwhip Effect Is a Result of Uncertainties in the Demand