The lack of information sharing between the retailer and manufacturer leads to a large fluctuation in manufacturer orders. True or False.
Understand the Problem
The question is asking whether a lack of information sharing between a retailer and manufacturer leads to large fluctuations in manufacturer orders. This refers to the bullwhip effect in supply chain management, where demand variability increases as you move up the supply chain.
Answer
True
True. The lack of information sharing between the retailer and manufacturer leads to a large fluctuation in manufacturer orders.
Answer for screen readers
True. The lack of information sharing between the retailer and manufacturer leads to a large fluctuation in manufacturer orders.
More Information
This phenomenon is often related to the bullwhip effect, where small changes in consumer demand can lead to large fluctuations in orders up the supply chain.
Tips
Understanding the bullwhip effect and the importance of information sharing can help avoid this issue.
Sources
- Chapter 10 Flashcards by Amy Horton - Brainscape - brainscape.com
- Solved The lack of information sharing between the retailer - Chegg - chegg.com
- Chapter 10 - HANDOUTS - Supply Chain Management ... - Studocu - studocu.com
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