Variability in demand in the supply chain is amplified as orders move up the supply chain. This phenomenon is called __________.
A) Market shifts
B) The bullwhip effect
C) Continuous replenishment
D) Demand forecasting

Question

Quizplus · Accepted Answer

The phenomenon described in the question is known as the bullwhip effect. Option A is incorrect as market shifts refer to changes in the overall demand for a product. Option C is incorrect as continuous replenishment is a strategy used to reduce the bullwhip effect. Option D is incorrect as demand forecasting is a tool used to predict demand but does not directly address the amplification of demand variability in the supply chain.

Variability in Demand in the Supply Chain Is Amplified as Orders