which of the following describe effective responses to minimizing the impacts of the bullwhip effect? (choose all that apply) group of answer choices enable delivery in smaller batches increasing the generosity of return and order cancellation policies shifting to vendor-managed inventory improve information sharing to increase visibility of demand through the supply chain remove incentives for retailers to place orders at the same time (e.g. trade promotions)

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08-11-2022
Business

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which of the following describe effective responses to minimizing the impacts of the bullwhip effect? (choose all that apply) group of answer choices enable delivery in smaller batches increasing the generosity of return and order cancellation policies shifting to vendor-managed inventory improve information sharing to increase visibility of demand through the supply chain remove incentives for retailers to place orders at the same time (e.g. trade promotions)

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Neetuverma Neetuverma · Answer 1 · 2022-11-13T12:27:08+01:00

The effective response to minimizing the impacts of the bullwhip effect is improve information sharing to increase visibility of demand through the supply chain.

What is bullwhip effect?

The bullwhip effect is a phenomena that occurs in the supply chain when orders to suppliers have a tendency to vary more than sales to buyers, which amplifies the unpredictability of demand upstream. As one gets further up the supply chain, this partly causes inventory to fluctuate more in reaction to changes in consumer demand. It is also known as the Forrester effect because the idea initially appeared in Jay Forrester's Industrial Dynamics in 1961. "The observed tendency for material orders to be more variable than demand signals and for this variability to rise the further upstream a company is in a supply chain," is how one definition of it has been put. Stanford University's Department of Science used a Volvo-related tale to help the idea become part of supply chain lingo.

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