A Distortion of Information About the Demand for a Product

question 16

Multiple Choice

A distortion of information about the demand for a product as it passes from one entity to the next across the supply chain is called the ________ effect.

• A) network
• B) bullwhip
• C) ripple
• D) whirlpool

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Definitions:

Cash Flows

The net amount of cash and cash-equivalents moving into and out of a business.

Today's Dollars

Today's Dollars refers to the value of money in terms of the present day's purchasing power, often used to account for inflation in financial calculations.

Profitability Index

A calculation that measures the ratio between the present value of future cash flows to the initial investment, used to assess the profitability of an investment.

IRR

The discount rate at which the net present value of all the cash flows from a project or investment equals zero.