The Bullwhip Effect Describes Consistency and Continuity in Demand for a Product

question 3

True/False

The bullwhip effect describes consistency and continuity in demand for a product as it passes from one entity to the next across the supply chain.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service.

Relevant Range

The range of activity or volume in which the assumptions about fixed costs and variable costs are valid.

Variable Cost

Costs that fluctuate with the level of output, such as materials and labor directly involved in production.

Cost Driver

An element that leads to a variation in the expense associated with an action.