Which of the Following Does NOT Cause the Bullwhip Effect

question 45

Multiple Choice

Which of the following does NOT cause the bullwhip effect in an uncoordinated supply chain?

• A)delays in transmitting orders
• B)overreacting to shortages
• C)ordering in batches
• D)delays in receiving orders
• E)information sharing

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Definitions:

Default Risk

The risk that a borrower will not make the required payments on a debt.

Trade Credit

An arrangement where a buyer can purchase goods on account without paying cash upfront, with payment to the seller due at a later date.

Inventory Obsolescence

Refers to the reduction in the value of inventory items due to them becoming outdated, no longer useful, or unsalable.

Opportunity Cost

The expense associated with choosing not to pursue the second-best option during decision-making.