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.

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Definitions:

Standard Deviation

A method for estimating the scatter or disparity among a set of numerical values.

Wilcoxon Signed Rank Test

A non-parametric statistical test used to compare two related samples or repeated measurements on a single sample to assess differences.

Observations

These are the individual pieces of data or measurements collected during a study or experiment.

Ranks

Positions in an ordered list, often used in statistics to organize data points based on their value or score.