Variability in Demand in the Supply Chain Is Amplified as Orders

question 50

Multiple Choice

Variability in demand in the supply chain is amplified as orders move up the supply chain. This phenomenon is called __________.

• A) Market shifts
• B) The bullwhip effect
• C) Continuous replenishment
• D) Demand forecasting

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Definitions:

Perishable Items

Goods that have a limited shelf life and require quick sale to avoid spoilage, such as food and flowers.

Low Markups

Refers to the small difference between the cost of goods and their selling price, typically indicating a low profit margin.

Accounts Receivable Approach

A method focusing on the management and analysis of accounts receivable to improve a company's liquidity and operational efficiency.

Credit Policy

A credit policy is a set of guidelines that a company follows to determine the credit terms for customers, including payment terms, interest rates, and the criteria for extending credit.