Explain the Concept of 'Driving Force

question 11

Essay

Explain the concept of 'driving force.' Include a discussion of the three options available for an effective driving force.

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Definitions:

Bullwhip Effect

A phenomenon in supply chains where small fluctuations in demand at the retail level cause increasingly larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

Quantity Discounts

Price reductions given for purchasing goods in large quantities, often used by sellers to encourage bulk purchases.

Annual Volume

The total amount of something produced or processed in a year.

Line Balancing

Line balancing is the process of allocating tasks among assembly line workers or machines to ensure that each has an equal amount of work and there are minimal idle times.