A major underlying cause for the bullwhip effect includes ______.
A)revised demand forecasts
B)the pull system of manufacture
C)low elasticity of demand
D)low elasticity of supply

Question

Quizplus · Accepted Answer

Revised demand forecasts can lead to the bullwhip effect because changes in forecasts can cause companies to overreact, ordering too much or too little inventory, which then amplifies fluctuations up the supply chain.

A Major Underlying Cause for the Bullwhip Effect Includes ______