If the Variance of Orders of a Manufacturer Equals 800

question 181

Multiple Choice

If the variance of orders of a manufacturer equals 800, and the variance of orders of its supplier equals 850, what is happening at this part of the supply chain?

• A) The bullwhip effect is present.
• B) The supplier is providing a dampening (anti-bullwhip) effect.
• C) The bullwhip measure for the supplier equals 1.067
• D) Neither amplification nor smoothing is present.
• E) Both amplification and smoothing are present.

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Definitions:

Dominant Style

Refers to the most prominent or influential manner in which an activity is performed or an idea is presented.

Communicators

Individuals or entities that convey information, ideas, or messages to others, through various means and mediums.

People

Refers to human beings collectively, often considered in contrast to other animals or as a collective term for all humanity.

Individualistic Cultures

Cultures that emphasize personal achievements, individual rights, and independence.