General Studies · Supply Chain Management
What is the 'Bullwhip Effect' in supply chain management?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Amplification of demand fluctuations as order information moves upstream along the supply chain✓
- 2Overstocking resulting exclusively from poor forecasting in retail stores
- 3Stockouts occurring due to failure of Just-In-Time (JIT) delivery systems
- 4Increase in overall operational costs due to warehouse inventory theft
Correct answer
Amplification of demand fluctuations as order information moves upstream along the supply chain
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