The distortion of demand forecasts in the supply chain that results in excessive inventory as demand moves further away from the end use customer is known as the
A)Delphi effect
B)bullwhip effect
C)time series effect
D)distortion effect

Question

Quizplus · Accepted Answer

The term that refers to the distortion of demand forecasts in the supply chain resulting in excessive inventory as demand moves further away from the end use customer is known as the bullwhip effect. The reason for this effect is the lack of communication and coordination among supply chain stages which causes a fluctuation in demand amplification as the product moves along the chain.

The Distortion of Demand Forecasts in the Supply Chain That