Suppose That in Month 1,both the Retailer and the Wholesaler

question 16

Multiple Choice

Suppose that in month 1,both the retailer and the wholesaler in a supply chain ordered 20,000 units.Then in month 2,the retailer decreases its order size by 1000 units.If the wholesaler then decreases its order size in month 2 by 700 units,which of the following is TRUE?

• A)The wholesaler is contributing to the bullwhip effect.
• B)The wholesaler is providing a dampening (anti-bullwhip)effect.
• C)The bullwhip measure for the wholesaler equals 0.70.
• D)Neither amplification nor smoothing is present.
• E)The wholesaler is providing both amplification and smoothing.

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Definitions:

American Indians

Indigenous peoples of the United States, including numerous tribes, each with their own distinct cultures and history.

European Americans

Individuals in the United States who trace their ancestry to Europe.

Insulin

A substance secreted by the pancreas that controls the levels of sugar in the blood by enabling glucose to be absorbed into body tissues.

Cortisol

A steroid hormone produced by the adrenal glands, often referred to as the "stress hormone" because its levels increase in response to stress.