Information systems have the capability to eliminate the bullwhip effect.

Question

Quizplus · Accepted Answer

Information systems can help reduce uncertainty and increase transparency in the supply chain, which can eliminate the bullwhip effect by preventing exaggerated demand signals from being passed up the chain. By improving communication and collaboration among supply chain partners, information systems can also help prevent the build-up of inventory and reduce the need for costly stockouts.

Information Systems Have the Capability to Eliminate the Bullwhip Effect