Asked by Alexandro Enriquez on Jul 17, 2024
Verified
The lack of information sharing between the retailer and manufacturer leads to a large fluctuation in manufacturer orders.
Information Sharing
The exchange of data, facts, ideas, and insights between individuals or organizations, aimed at improving understanding, efficiency, and collaborative efforts.
Fluctuation
Describes variations or changes in a metric or condition over time, such as price, demand, or supply levels.
Manufacturer Orders
Requests or instructions sent to a factory or producer for the creation or supply of goods, indicating the quantity and specifications desired.
- Recognize the importance of disseminating information in mitigating the bullwhip effect and boosting collaboration across the supply chain.
Verified Answer
DS
Donna ShepherdJul 18, 2024
Final Answer :
True
Explanation :
If the retailer and manufacturer do not communicate effectively and share accurate information, the manufacturer may not have a clear idea of the demand for their products, leading to fluctuations in order quantities.
Learning Objectives
- Recognize the importance of disseminating information in mitigating the bullwhip effect and boosting collaboration across the supply chain.