Lot size based quantity discounts reduce the bullwhip effect within the supply chain.
Understand the Problem
The question is asking whether lot size based quantity discounts contribute to reducing the bullwhip effect within the supply chain. The bullwhip effect refers to the phenomenon where small changes in consumer demand lead to larger changes in demand experienced by upstream suppliers. The user needs to determine if the statement is true or false.
Answer
False
The final answer is False.
Answer for screen readers
The final answer is False.
More Information
Lot size-based quantity discounts can increase order lot sizes, which can contribute to the bullwhip effect rather than reduce it.
Tips
A common mistake is assuming that all discounts are beneficial for the supply chain without considering the specific impact on order patterns.
Sources
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