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The bullwhip effect enables different stages of the supply chain to have a consistent estimate of what demand looks like.

a) True
b) False

User Craned
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Final answer:

The bullwhip effect causes variability and inefficiency in the supply chain, and is due to lack of synchronization and information delays, making the statement false.

Step-by-step explanation:

The statement "The bullwhip effect enables different stages of the supply chain to have a consistent estimate of what demand looks like." is false. The bullwhip effect actually refers to the phenomenon where orders to suppliers tend to increase with each step in the supply chain, leading to greater variability and inefficiency within the supply chain. This effect is caused by a lack of synchronization among supply chain participants, and by delays in the transmission of information up the chain, which results in a mismatch between the supply and the actual consumer demand. To mitigate the bullwhip effect, companies use improved forecasting methods, reduce lead times, and enhance information sharing between stages of the supply chain.

User Matt Croak
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