Question: 1. Which inventory system is the preferred inventory system since orders are not built until the customer places an order? a. Push system b. Bullwhip

1. Which inventory system is the preferred inventory system since orders are not built until the customer places an order?

a. Push system

b. Bullwhip effect

c. Pull system

d. Vendor managed inventory

At the beginning of COVID-19, consumers went to their grocery stores (and other stores) to stock up on toilet paper. As a result, the grocery stores and the other stores placed higher orders for toilet paper to make sure they had sufficient inventory to cover the consumer demand. Due to production limitations, the toilet paper manufacturers were not able meet the orders of the stores which in turn resulted in stockouts. Because of the stockouts, the stores increased their orders for toilet paper to the manufacturers. This cycle of increased orders continued until additional suppliers were found and consumer demand subsided. What did this situation illustrate?

a. Push system

b. Bullwhip effect

c. Pull system

d. Vendor managed inventory

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