The continuing cycle of erratic demand causing forecasts to include safety stock which in turn magnify supplier forecasts and cause production planning problems is known as:
A) Supply chain management
B) Process integration
C) Back-shoring
D) Bullwhip effect

Question

Quizplus · Accepted Answer

The given description is of the Bullwhip Effect, where small changes in consumer demand ripple through the supply chain, causing magnification of demand variability, and eventually leading to inventory imbalances, stockouts, and lost sales.

The Continuing Cycle of Erratic Demand Causing Forecasts to Include