The phenomenon in supply chains whereby ordering patterns show increasing variances the further upstream you move in the supply chain is referred to as
A) bullwhip effect.
B) forward placement.
C) inventory pooling.
D) postponement.

Question

Quizplus · Accepted Answer

The bullwhip effect is a phenomenon in supply chains whereby ordering patterns show increasing variances the further upstream you move in the supply chain. This is because each level of the supply chain amplifies the variability of demand from the level below it.

The Phenomenon in Supply Chains Whereby Ordering Patterns Show Increasing