Asked by Joseph Bartmann on Apr 25, 2024
Verified
Which of the following is not a potential cause of the bullwhip effect?
A) shortage gaming
B) channel coordination
C) order batching
D) demand forecast errors
E) price fluctuations
Bullwhip Effect
The phenomenon where variations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, manufacturer, and raw material supplier levels.
Shortage Gaming
A strategy used in supply chain management where participants may exaggerate their needs to avoid stockouts, often leading to inefficiencies or distortions in supply chains.
- Comprehend the principle and consequences of the bullwhip effect within supply chains.
- Differentiate between strategies that exacerbate vs. mitigate the bullwhip effect.
Verified Answer
TP
Tyshawn Payne7 days ago
Final Answer :
B
Explanation :
Channel coordination actually helps to reduce the bullwhip effect by improving communication and collaboration among supply chain partners. Shortage gaming, order batching, demand forecast errors, and price fluctuations are all potential causes of the bullwhip effect.
Learning Objectives
- Comprehend the principle and consequences of the bullwhip effect within supply chains.
- Differentiate between strategies that exacerbate vs. mitigate the bullwhip effect.