Which of the following is not a reason for bullwhip effect?
a) Communication issues
b) Labor issues
c) Quality issues
d) All of the above factors can cause bullwhip effect
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Answer:
ANSWER IS POTION (D).
Explanation:
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Which of the following is not a reason for bullwhip effect?
The correct answer is :
d) All of the above factors can cause bullwhip effect
Explanation :
- The bullwhip effect is defined as the demand distortion that travels up the supply chain from the retailer to the wholesaler and through the manufacturer, which can be larger than sales.
- Major effects of bullwhip effect are communication issue, labor issue, quality issue,
- Over- or under-reacting to demand expectations, such as ordering too many units or not having enough.
- The main reason for the bullwhip effect is to make inaccurate forecasts by over demand to predict future demand.
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