The bullwhip effect ________.
A)is not related to erratic consumer demand
B)forces distributors, manufacturers, and suppliers to carry smaller inventories than necessary
C)increases the overall profitability of the supply chain
D)can be eliminated by restricting access to consumer-demand information from the retailer to only a few participants in the supply chain

Question

Quizplus · Accepted Answer

The bullwhip effect is related to erratic consumer demand, as it refers to the phenomenon where small fluctuations in consumer demand at the retail level cause larger and larger fluctuations in demand at the wholesale, distributor, manufacturer, and supplier levels.

The Bullwhip Effect ________