ENTREPRENEURIAL OPERATIONS
SUPPLY CHAIN MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Bullwhip effect
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Reverse supply chain
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Netchain analysis
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Reverse logistics
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Detailed explanation-1: -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. The effect is named after the physics involved in cracking a whip.
Detailed explanation-2: -Real-world examples of the bullwhip effect As panic-buying resulted in supply shortages, stores were scrambling to increase their orders and keep their shelves stocked. Further up in the supply chain, manufacturers were also increasing production to meet this excessive spike in demand.
Detailed explanation-3: -What are the Impacts of the Bullwhip Effect? The bullwhip effect either creates excess or a lack of inventory. A surplus of inventory is expensive and wastes resources, while insufficient stock leads to unfulfilled orders and poor customer service (which can result in lost business in the short-and long-term).