The fact that each stage in a supply chain forecasts demand based on the stream of orders received from the downstream stage results in?
Understand the Problem
The question is asking what the result is of each stage in a supply chain forecasting demand based on downstream orders. It addresses the implications of this practice on aspects like forecast accuracy and demand fluctuations.
Answer
A magnification of fluctuations in demand as we move up the supply chain from the retailer to the manufacturer.
The final answer is a magnification of fluctuations in demand as we move up the supply chain from the retailer to the manufacturer.
Answer for screen readers
The final answer is a magnification of fluctuations in demand as we move up the supply chain from the retailer to the manufacturer.
More Information
This phenomenon is known as the bullwhip effect, where small changes in consumer demand lead to larger variations in orders as they move up the supply chain.
Tips
A common mistake is misinterpreting this as an increase in forecast accuracy. In reality, the bullwhip effect leads to inaccuracies.
Sources
- The web page with info on - Example Source - brainly.com
- Solved 15. The fact that each stage in a supply chain | Chegg.com - chegg.com
AI-generated content may contain errors. Please verify critical information
