Asked by Gavin Laielli on Jun 04, 2024
Verified
The bullwhip effect
A) positively impacts performance at every stage.
B) hurts the relationships between different stages of the supply chain.
C) enhances the relationships between different stages of the supply chain.
D) results in improved on-time order delivery.
Bullwhip Effect
A phenomenon in supply chain management where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand upstream.
Supply Chain Relationships
The interactions and connections between various entities involved in the production and distribution of goods, from suppliers to customers.
- Understand the origins and outcomes of the bullwhip effect in supply chain contexts.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
B
Explanation :
The bullwhip effect refers to the phenomenon in which small fluctuations in demand at the consumer level can cause significant fluctuations in demand at upstream levels of the supply chain. This can result in overproduction, stockouts, and other inefficiencies that can damage relationships between different stages of the supply chain. Therefore, it hurts the relationships between different stages of the supply chain.
Learning Objectives
- Understand the origins and outcomes of the bullwhip effect in supply chain contexts.
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