The situation in which fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to suppliers is known as
A) market fluctuations.
B) the whiplash effect.
C) the bullwhip effect.
D) lack of visibility.
E) none of the above

Question

Quizplus · Accepted Answer

The situation where fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to suppliers is known as the bullwhip effect. This is because the effect resembles the way a small flick of a bullwhip's tail results in a much larger wave moving down the length of the whip.

The Situation in Which Fluctuations in Orders Increase as They