Practice Quiz

Supply Chain Management

Category - Core Concepts

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The bullwhip effect:
  1. Is an ineffective way to motivate warehouse employees.
  2. Applies to rodeos and has nothing to do with supply chain management.
  3. Refers to the “swaying” motion associated with triple trailers.
  4. Is the variability in demand orders among supply chain members.
Explanation
Answer: D - The bullwhip effect refers to the distortion in demand information within the supply chain to the variability in demand orders among supply chain participants. In other words, it is the phenomenon of upstream variability amplification that indicates a lack of synchronization among supply chain members or participants.
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