Tying Allocation to Past Sales Removes Any Incentive a Retailer

question 93

True/False

Tying allocation to past sales removes any incentive a retailer may have to inflate orders,as a result dampening the bullwhip effect.

---

Definitions:

Unconditioned Response

An innate, involuntary response to a stimulus that happens without any previous education or conditioning.

Rowdy

Behaving in a noisy, disorderly, and often disruptive manner, typically as a part of a group or gathering.

Reinforcement

In psychology, a process by which the likelihood of a behavior is increased through the administration of positive stimuli (rewards) or the removal of negative stimuli.

Intensity of the Punishment

Intensity of the Punishment refers to the severity or harshness of a penalty intended to modify behavior through aversive stimuli or consequences.