The Bullwhip Effect

question 130

Multiple Choice

The bullwhip effect:

• A)occurs as orders are relayed from retailers to distributors to wholesalers to manufacturers.
• B)results in increasing fluctuations at each step of the sequence.
• C)increases the costs associated with inventory in the supply chain.
• D)occurs because of distortions in information in the supply chain.
• E)All of the above are true.

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Definitions:

Avoid the Risk

A risk management strategy involving actions to prevent exposure to a risk, often by choosing not to engage in an activity.