Which of the Following Changes Would Decrease the Likelihood of the Bullwhip

question 120

Multiple Choice

Which of the following changes would decrease the likelihood of the bullwhip effect?

• A) instituting a policy of no discounts or promotion
• B) changing the mix of items in an order
• C) sending late deliveries of an order
• D) sending partial shipments of an order

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Definitions:

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, essentially a measure of producer benefit.

Demand Curve

A graph that shows the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Supply Curve

A graphical representation showing the relationship between the price of a good and the amount of it that suppliers are willing to produce.

Actual Price

The price at which goods or services are sold in the market, as opposed to theoretical or listed prices.