Question: Based on the given models, model 1 and model 2 you just created, and the course content, which one of the follwing statements is TRUE

Based on the given models, model1 and model2 you just created, and the course content, which one of the follwing statements is TRUE about bullwhip effect? Hint: The models you created will be helpful in evaluating these statements.
for Model1
Bullwhip effect for Retail Stores 433.82
Bullwhip effect for Distribution Center 2.499
Bullwhip effect for Assembly Plant 2.249
for Model2
Bullwhip effect for Retail Stores 1
Bullwhip effect for Distribution Center 433.82
Bullwhip effect for Assembly Plant 2.499
Select the correct answer
The effect of the retail store placing daily orders to the distribution center is that the size of the bullwhip effect is now reduced for all stages of the supply chain.
When Customer Demand increases uniformly across all products and all time periods, the bullwhip effect for Retail Stores will also increase.
As order variance for Customer Demand increases, and other order patterns remain the same, the bullwhip effect for Retail Stores will increase, but the other bullwhip effects are unchanged.
If the total demand for a given week is the same, but the variance of customer demand across the 3 products for that week increases, the bullwhip effect for Retail Stores will also increase.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!