Which of the following is NOT a cause of the bullwhip
effect?
Order batching
Order batching
Order batching
Order batching
Inflated orders placed by the retailers
Inflated orders placed by the retailers
Inflated orders placed by the retailers
Inflated orders placed by the retailers
Long lead time
Long lead time
Long lead time
Long lead time
Share demand and inventory data across the supply chain
Share demand and inventory data across the supply chain
Share demand and inventory data across the supply chain
Share demand and inventory data across the supply chain
Minimum order quantities
Minimum order quantities
Minimum order quantities
Minimum order quantities
The correct answer is ” Share demand and inventory data across
the supply chain “.
Bullwhip effect is the occurrence of
variance of the orders sent to the manufacturer and supplier to
that sent to the customers. This large variance is identified in
supply chain.
There are many factors that
contribute to this effect. They are:-
Supply chain not organized
properly
Lack of communication
Customer returning the products
often due to free return policy.
Discounts and promotions may
increase the demand for short period of time.
Relying more on past demand
information.
These are the following measures to
overcome bullwhip effect.
Focusing more on customer and
designing the network accordingly.
Based on the demand the inventory
should be optimized.
Focusing on sharing information and
extracting information from partners.
Product complexity should be
managed appropriately.
Maintaining the price of product
stable.
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