Asked by Randall Armstrong on Apr 27, 2024

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Which of the following is not a remedy for the bullwhip effect?

A) share demand information
B) channel coordination
C) order batching
D) price stabilization
E) allocate orders based on past demand

Bullwhip Effect

A phenomenon in supply chain management where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

Demand Information

Data or insights related to the demand for products or services, which can include customer preferences, market trends, and sales forecasts.

  • Distinguish between approaches that intensify versus those that alleviate the bullwhip effect.
  • Understand the significance of sharing information and collaborating to minimize risks in the supply chain.
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DW
Deidrick WilliamsApr 27, 2024
Final Answer :
C
Explanation :
Order batching is actually a common cause of the bullwhip effect, as it involves consolidating customer orders into larger batches, which can cause fluctuations in demand to be amplified as they move up the supply chain. The other choices (A, B, D, and E) are all potential remedies for the bullwhip effect, as they involve increasing visibility, communication, and collaboration among supply chain partners, or establishing more stable pricing or ordering relationships.