The bullwhip effect occurs when order variance decreases upstream.

Question

BlackTom AI · Accepted Answer

Consider the statement's claim about the bullwhip effect and how variance changes along the supply chain.
Option 1: True. If we interpret this as saying that order variance decreases upstream, the claim would contradict the classic bullwhip effect. In practice, the bullwhip effect describes increasing variability in orders as you move from downstream (retail) toward upstream (suppliers). Therefore, describing a decrease upstream would be inaccurate and not aligned with the established concept.
Option 2: False. This option matches the standard understanding: the bullwhip effect is characterized by higher variability in orders and demand signals as you go upstream in the supply chain. Several causes are cited in theory and practice, such as demand forecast updating, order batching, lead times, and misaligned incentives, all contributing to amplified fluctuations upstream. Hence, the assertion that variance decreases upstream is incorrect.
In summary, the statement would claim a decrease in variance upstream (True), but the well-supported concept is the opposite—variance increases upstream (False). The evaluation hinges on whether one recognizes that amplification, not attenuation, is the hallmark of the bullwhip phenomenon.

MGS3100W10 Assignment 3 - Requires Respondus LockDown Browser

The bullwhip effect occurs when order variance decreases upstream.

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MGS*3100*W10 Assignment 3 - Requires Respondus LockDown Browser

The bullwhip effect occurs when order variance decreases upstream.

查看解析

登录即可查看完整答案

类似问题

The bullwhip effect increases upstream order variability.

The bullwhip effect refers to:

Company X is implementing a new SCM system to improve visibility and real-time information sharing across its supply chain. What is one of the primary benefits they can expect from increased supply chain visibility?

A retailer notices a small increase in customer purchases and orders double the amount from the distributor. The distributor then orders triple from the manufacturer. This scenario is an example of:

A retailer notices a small increase in customer purchases and orders double the amount from the distributor. The distributor then orders triple from the manufacturer. This scenario is an example of:

The Blank ______ effect occurs when distorted product-demand information ripples from one partner to the next throughout the supply chain.

What occurs when distorted product-demand information ripples from one partner to the next throughout the supply chain?

What is the Overall Bullwhip Effect?

更多留学生实用工具

希望你的学习变得更简单

MGS3100W10 Assignment 3 - Requires Respondus LockDown Browser