When small changes generated by a customer produce progressively larger changes at each stage upstream in the supply chain,this is known as:
A)Buffering.
B)Bullwhip effect.
C)Pareto effect.
D)Supplier-managed inventory.

Question

Quizplus · Accepted Answer

The phenomenon described in the question is known as Bullwhip effect. The small changes in customer demand can lead to significant changes in demand variability at each stage upstream in the supply chain, which can amplify as they move upstream. This can result in excessive inventory, increased costs, and reduced efficiency.

When Small Changes Generated by a Customer Produce Progressively Larger