Final answer:
Rationing is a contributor to the bullwhip effect, which causes distortions in supply chain as order sizes increase due to perceived scarcity. Strategies like EDLP and VMI typically help reduce this effect, not contribute to it.
Step-by-step explanation:
The question pertains to the bullwhip effect, which is a phenomenon observed in supply chain management where small fluctuations in demand at the retail level cause larger fluctuations in demand at the wholesale, distributor, and manufacturer levels. Out of the given options, rationing is a contributor to the bullwhip effect. This is because when demand exceeds supply, manufacturers or wholesalers may ration their products, causing retailers to order more than they need to ensure they have enough stock, leading to distortion of demand information as it moves up the supply chain. Factors such as smaller order sizes, Every Day Low Pricing (EDLP), and Vendor Managed Inventory (VMI) are typically strategies to reduce the bullwhip effect, not cause it. More importantly, it's essential for companies to enhance their forecast accuracy, reduce lead times, and share information across the supply chain to mitigate the impact of the bullwhip effect.