Sharing of POS Data Helps Reduce the Bullwhip Effect Because

question 53

True/False

Sharing of POS data helps reduce the bullwhip effect because it allows each stage of the supply chain to use orders from the previous stage to forecast future demand.

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Definitions:

Output

The total amount of goods or services produced by a firm, industry, or economy over a certain period of time.

Isoquant

A curve that represents all the combinations of inputs that produce the same level of output in the production process.

Returns to Scale

The rate at which output changes if the scale of all inputs is changed by the same proportion.

Output Level

The amount of product or service that is produced by a company or an economy at a given time.