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Bullwhip effect is often increased by not reacting to trends quickly enough. IS IT TRUE???????

  1. Bullwhip effect is often increased by not reacting to trends quickly enough. IS IT TRUE???????
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Answer #1

Answer

FALSE

The bullwhip effect is a supply chain phenomenon describing how small fluctuations in demand at the retail level can cause progressively larger fluctuations in demand at the wholesale, distributor, manufacturer and raw material supplier levels.Here when the small change is happend by the retailor will leads to much bigger change in case of manufactures. So the increase of supply by the retailor will leads to increase in Bullwhip effect. For an increase in the supply there should be quick response to the trends as much quickly. If there is no reaction to the trends then the bullwhip effect is not possible or it will not increase. SO to increase the bullwhip effect there should be quick reaction to the trends.

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