The bullwhip, or whiplash, effect on inventories begins when retailers face uncertain demand from consumers caused by randomness in buying habits. It can be avoided by:
A. The need to purchase or manufacture goods in cost-efficient batches.
B. Changes in price that may encourage purchases in anticipation of future increases.
C. Shortages that may lead to rationing by suppliers or manufacturers and hoarding bymanufacturers or retailers.
D. Sharing of information and coordination among the organizations in the supply chain.
Answer:D
The bullwhip, or whiplash, effect on inventories begins when retailers face uncertain demand from consumers caused by randomness in buying habits. It can be avoided by:
A. The need to purchase or manufacture goods in cost-efficient batches. B. Changes in price that may encourage purchases in anticipation of future increases. C. Shortages that may lead to rationing by suppliers or manufacturers and hoarding bymanufacturers or retailers. D. Sharing of information and coordination among the organizations in the supply chain.