Information systems are used to reduce or eliminate the bullwhip effect, hence, saving costs.

Question

Quizplus · Accepted Answer

Information systems, such as Enterprise Resource Planning (ERP) and demand forecasting software, can help to reduce the bullwhip effect by providing accurate and timely information about consumer demand and inventory levels, allowing companies to adjust their production and inventory levels accordingly. This can lead to cost savings by reducing the need for excess inventory and minimizing stockouts.

Information Systems Are Used to Reduce or Eliminate the Bullwhip