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Supply Chain Management Professional (SCMP) · Question

What is the 'bullwhip effect' in supply chain management?

The bullwhip effect describes how small changes in consumer demand can lead to increasingly larger fluctuations in orders further up the supply chain.

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Question: What is the 'bullwhip effect' in supply chain management?

Answer options:

  • Increased product quality throughout the chain ✅ A phenomenon where demand variability gets amplified up the supply chain
  • The rapid adoption of new technologies
  • The efficient flow of information between partners

Correct answer: A phenomenon where demand variability gets amplified up the supply chain

Explanation: The bullwhip effect describes how small changes in consumer demand can lead to increasingly larger fluctuations in orders further up the supply chain.

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