Supply Chain Management Professional (SCMP) · Question
A bullwhip effect in a supply chain refers to:
The bullwhip effect describes how small fluctuations in consumer demand can lead to increasingly larger fluctuations in orders placed by entities further up the
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Question: A bullwhip effect in a supply chain refers to:
Answer options:
- Decreasing demand variability as you move up the supply chain. ✅ Increasing demand variability as you move up the supply chain.
- A sudden increase in raw material prices.
- A rapid decrease in lead times.
Correct answer: Increasing demand variability as you move up the supply chain.
Explanation: The bullwhip effect describes how small fluctuations in consumer demand can lead to increasingly larger fluctuations in orders placed by entities further up the supply chain.
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