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Supply Chain Management (SCM) MCQs
The Bullwhip Effect refers to ____.
3. The Bullwhip Effect refers to ____.
- Smooth supply chain operations
- Consistent demand patterns
- Amplification of demand fluctuations
- Minimal inventory holding costs
Answer
The correct answer is: C) Amplification of demand fluctuations
Explanation
The Bullwhip Effect describes the phenomenon where small fluctuations in demand at the consumer level can lead to significant fluctuations upstream in the supply chain.