In a supply chain with the sequence of factory, distributor, wholesaler, retailer, which entity is most likely to experience the greatest variability in demand resulting from the bullwhip effect?

Question

Quizplus · Accepted Answer

The retailer is most likely to experience the greatest variability in demand resulting from the bullwhip effect. This is because retailers are closest to the end customer and are subject to fluctuations in consumer demand, which are amplified as they move up the supply chain. Demand variability increases as one moves further up the supply chain, leading to the bullwhip effect.

In a Supply Chain with the Sequence of Factory, Distributor