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:

Interest Expense

The cost accrued on borrowed funds, reflected as a financial charge for the use of the lender's money.

FICA Withholding

Taxes that are automatically deducted from an employee’s wages for Social Security and Medicare, as mandated by the Federal Insurance Contributions Act.

Tax Rate

The percentage at which an individual or corporation is taxed, varying by income or profits level and jurisdiction.

Deductions

Amounts that are subtracted from an individual's gross income to reduce the income subject to tax, including various expenses, contributions, and allowances.