True or false: Behavioral obstacles are often related to the way the supply chain is structured and reduce the bullwhip effect.

Understand the Problem

The question is asking whether behavioral obstacles in a supply chain, which stem from how the chain is structured, actually reduce the bullwhip effect. The bullwhip effect is a phenomenon where demand variability increases as you move up the supply chain (away from the customer). We need to evaluate if the structural aspects of the supply chain and related behavioral obstacles counteract or exacerbate this effect.

Answer

False

The statement "Behavioral obstacles are often related to the way the supply chain is structured and reduce the bullwhip effect" is false. Behavioral factors often exacerbate the bullwhip effect, not reduce it.

Answer for screen readers

The statement "Behavioral obstacles are often related to the way the supply chain is structured and reduce the bullwhip effect" is false. Behavioral factors often exacerbate the bullwhip effect, not reduce it.

More Information

The bullwhip effect is a supply chain phenomenon describing how small fluctuations in demand at the retail level can cause progressively larger fluctuations in demand at the wholesale, distributor, manufacturer, and raw material supplier levels.

Tips

It's easy to get confused about the impact of behavioral factors on the bullwhip effect. Always remember that these factors typically amplify, rather than mitigate, the fluctuations in demand across the supply chain.

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