The Bullwhip Effect Can Be Reduced If ________

question 60

Multiple Choice

The bullwhip effect can be reduced if ________.

• A) suppliers receive faxed purchase orders from the retailer
• B) suppliers are provided with warehouse management software
• C) suppliers have real-time access to up-to-date retail sales data
• D) suppliers are provided with global trade management software

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Definitions:

E(XY)

The expected value of the product of two random variables X and Y, indicating their joint mean over all pairs of outcomes.

Marginal Probability

The probability of an event occurring, regardless of the outcomes of other variables; it is calculated by summing the probabilities of the event across all values of the other variables.

E(X + Y)

The expected value of the sum of two random variables, equal to the sum of their individual expected values.

Covariance

A measure that indicates the extent to which two variables change together, but does not indicate the strength of their relationship.