Ordering large quantities of goods from suppliers on an infrequent basis is associated with which cause of the bullwhip effect?
A) Demand forecast updating
B) Price fluctuations
C) Order batching
D) Rationing and shortage gaming

Question

Quizplus · Accepted Answer

Ordering large quantities of goods from suppliers on an infrequent basis is known as order batching. This can amplify the bullwhip effect because it leads to irregular and larger orders being placed further up the supply chain, causing greater fluctuations in demand signals.

Ordering Large Quantities of Goods from Suppliers on an Infrequent