Question: A retailer operates a distribution center ( DC ) that serves 2 5 0 retail stores. The retail stores sell individual units but shipments from
A retailer operates a distribution center DC that serves retail stores. The retail stores sell individual units but shipments from the DC to the stores are done in case quantities ie each store orders from the DC an integer number of cases Orders submitted to suppliers for delivery to the DC are done in pallet quantities. Each pallet holds multiple cases, with the actual number of cases depending on the size and weight of the product.
The bullwhip effect is likely to be present in this supply chain because there is evidence of order batching effects.
True
False
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