A Result of Effective Information Flow Through the Supply Chain

question 43

Multiple Choice

A result of effective information flow through the supply chain is:

• A) Improved coordination and collaboration between supply chain partners
• B) Reduction in the amount of inventory across the supply chain
• C) Reduction of the bullwhip effect
• D) Compression of the supply chain from a time standpoint
• E) All of the above

---

Definitions:

Riskless Arbitrage

An investment strategy that involves exploiting price differences of identical or similar financial instruments on different markets or in different forms.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

Theoretical Value

The estimated price of an asset or financial instrument based on mathematical models instead of market prices, often used in options pricing.

Binomial Option Price

A mathematical model that is used to calculate the theoretical price of options using a binomial tree of possible price movements.