Which of the following is true regarding order amplification?
A)The fluctuation of orders is larger than the fluctuation in sales.
B)The amplitude of order quantity over time is smaller than the variation of sales.
C)The less the uncertainty, the greater the amplification in orders.
D)The amplification is greatest near the customer.

Question

Quizplus · Accepted Answer

Order amplification refers to the phenomenon where the variability of orders placed by retailers or distributors is greater than the variability of sales to the end customer, often due to factors like demand forecasting and inventory management practices.

Which of the Following Is True Regarding Order Amplification