The General Tendency Toward Increasing Variation in Demand and Inventory

question 84

Multiple Choice

The general tendency toward increasing variation in demand and inventory levels as we move further away from the end customer in the supply chain is referred to as

• A) bull- whip effect.
• B) internally generated shortages.
• C) capacity cushions.
• D) continuous replenishment.

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Definitions:

Resource Use

The exploitation and utilization of natural resources by humans for various needs, including energy, building materials, and food.

Developed Countries

Nations with advanced economic systems, high standards of living, and well-established infrastructure.

Manufactured Goods

Products that have been processed or assembled from raw materials into finished items ready for the consumer marketplace.

Human Needs

Fundamental requirements necessary for individuals to live healthy and stable lives, such as food, water, shelter, and safety.