Question

Q.Due to small change in customer demands, inventory oscillations become progressively larger looking through supply chain, known
(A) Bullwhip effect
(B) Netchain analysis
(C) Reverse logistics
(D) Reverse supply chain

Answer 1

The effect is known as the Bullwhip effect.

• An economic distribution channel situation where demand predictions yield supply chain inefficiencies is the bullwhip effect.
• In direct response to economic changes in market demand, this typically relates to typically growing changes in extensive inventory as one proceeds upward in the supply chain.
• On the supply chain, the effect takes place when changes in consumer demand lead to more products being ordered by an enterprise in the supply chain to respond to the new demand.  
• Usually, this effect flows through the supply chain, beginning with the producer, retailer, wholesaler, local distributor, and the principal source of raw materials.