26) The phenomenon in which the variability in the size and timing of orders increases at each stage up the supply chain is referred to as the ________.
A) synergistic effect
B) flanging effect
C) stack effect
D) bullwhip effect
27) Which of the following statements is true of the bullwhip effect?
A) It forces suppliers and manufacturers to carry smaller inventories than necessary.
B) It is a natural dynamic that occurs because of the multistage nature of the supply chain.
C) It is strongly associated with erratic consumer demand.
D) It increases the overall profitability of the supply chain.
28) Because of the nature of the bullwhip effect, the maximum variation in demand is faced by ________.
A) suppliers
B) manufacturers
C) distributors
D) retailers
29) The bullwhip effect explains the amplification of demand at various stages of a supply chain.
30) The large fluctuations of the bullwhip effect force organizations to stock fewer inventories than needed.
31) The bullwhip effect increases if all the participants in the supply chain have an access to consumer-demand information from the retailer.
32) Inter-enterprise information systems are necessary to share consumer-demand information.
33) True demand is the demand from the only party that introduces money into the system.