The Bullwhip Effect Can Occur When Orders Decrease as Well

question 90

True/False

The bullwhip effect can occur when orders decrease as well as when they increase.

---

Definitions:

Departmental Reports

Internal documents that break down business performance by departments, aiding in analyzing specific areas of a company.

Controlling

Controlling refers to management activities that ensure the organization's goals are consistently being met in an effective and efficient manner.

Gross Profit

Net sales less cost of goods sold.

Future Revenue

Income that a company expects to receive from its normal business activities in future periods.