Which of the Following Is TRUE About the Bullwhip Effect

question 27

Multiple Choice

Which of the following is TRUE about the bullwhip effect?

• A)Variability in demand increases from the factory stage downstream to the customer stage
• B)This cycle is prevalent in just about every industry
• C)Lead times between the stages of the supply chain tend to be very short
• D)Information lags stemming from large lot sizes with infrequent orders may be a cause

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Definitions:

Profit

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or the physical factors of production including machinery and buildings.

Resource Owners

Individuals or entities that hold legal rights or control over natural, human, or capital resources, enabling them to use or allocate them.

Wind Farms

Areas equipped with large numbers of wind turbines used to generate electricity.