Supply Chain Management Professional (SCMP) · Question
The bullwhip effect in supply chain refers to:
The bullwhip effect describes the phenomenon where small fluctuations in demand at the retail level can lead to increasingly larger fluctuations further up the
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Question: The bullwhip effect in supply chain refers to:
Answer options: ✅ Increasing demand variability as one moves up the supply chain from retailer to manufacturer
- A sudden decrease in transportation costs
- The rapid adoption of new technologies by suppliers
- A consistent and stable demand forecast across all tiers
Correct answer: Increasing demand variability as one moves up the supply chain from retailer to manufacturer
Explanation: The bullwhip effect describes the phenomenon where small fluctuations in demand at the retail level can lead to increasingly larger fluctuations further up the supply chain.
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