What Is the Bullwhip Effect in Supply Chains

question 74

Multiple Choice

What is the bullwhip effect in supply chains?

• A)It is the point at which the total cost is equal to the total revenue.
• B)It is a technique applied to manage projects in a supply chain.
• C)It is the sharing of data on a continuous basis between the supplier and customer.
• D)It is the increasing upstream supply chain variation resulting from forecasts in a supply chain.

---

Definitions:

Workers' Compensation Insurance

Insurance that provides financial benefits and medical care to employees who are injured or become ill as a direct result of their job.

Experience Rating

The number of employees a company has laid off in the past and the cost of providing them with unemployment benefits.

Bureau of Labor Statistics

A unit of the United States Department of Labor responsible for collecting and analyzing economic data related to labor market activity, working conditions, and price changes.

Health Care Benefits

Various types of medical care provisions offered to employees as part of their compensation package.