Which of the Following Is True About the Bullwhip Effect

question 43

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:

Marginal Social Cost

The comprehensive expense to society for producing an extra unit of a good or service, encompassing both individual costs and external ones.

Pollution

The introduction of contaminants into the natural environment, causing adverse change.

Efficient Rate

The optimal point at which the cost of undertaking an activity is minimized and productivity is maximized.

Emissions

The release of substances (usually gases or particulates) into the environment, often referring to pollutants released into the air by vehicles and industrial processes.