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22 December, 05:16

If the variance of orders of a manufacturer equals 800, and the variance of orders of its supplier equals 750, what is happening at this part of the supply chain?

A. The supplier is providing a dampening (anti-bullwhip) effect.

B. The bullwhip effect is present.

C. Both amplification and smoothing are present.

D. Neither amplification nor smoothing is present.

E. The bullwhip measure for the supplier equals 1.067

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Answers (1)
  1. 22 December, 05:42
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    The correct answer is option A

    A. The supplier is providing a dampening (anti-bullwhip) effect.
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