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

question 92

Multiple Choice

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

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

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Definitions:

Fair Value Adjustment

An accounting process to adjust the book value of an asset or liability to its fair value.

Unrealized Gain

The unrealized gain from an investment that hasn't been converted into cash.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, without controlling those policies.

Cash Dividends

Payments made by a corporation to its shareholders out of the company's current or retained earnings, usually in the form of cash.