Asked by drishika gulati on Jun 04, 2024
Verified
Describe how the U.S. Cash for Clunkers program unintentionally contributed to the bullwhip effect in the automobile industry.
Cash for Clunkers
A government program intended to stimulate the economy and encourage the purchase of new vehicles by offering financial incentives for trading in older, less-efficient cars.
Bullwhip Effect
A phenomenon in supply chains where small variations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.
- Become familiar with the concept and repercussions of the bullwhip effect in supply chain contexts.
Verified Answer
Learning Objectives
- Become familiar with the concept and repercussions of the bullwhip effect in supply chain contexts.
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