Which of the following is true about the bullwhip effect?
A)Small changes in demand at the supplier are amplified at each stage of the supply chain.
B)It is a natural dynamic that occurs because of the multistage nature of the supply chain.
C)It is strongly associated with erratic consumer demand.
D)It increases the overall profitability of the supply chain.

Question

Quizplus · Accepted Answer

The bullwhip effect is a natural dynamic that occurs in supply chains due to the multistage nature, where small changes in consumer demand can lead to larger variations in orders placed upstream.

Which of the Following Is True About the Bullwhip Effect