alleryStart learning →The bullwhip effect in supply chains refers to what?
ASupply always matching demand
BSmall demand shifts causing big swings
CStable prices across a year
DSuppliers delivering ahead of time
Answer & Solution
Correct answer: B. Small demand shifts causing big swings
Small changes in actual demand get magnified into much larger changes in orders up the chain.
Keep practising Working Capital
Browse all Working Capital questions for CA Inter, or explore more Financial Management topics.
Related questions
Single stage inventory calculations look at which scope?Setting a number of days of supply as a coverage target is an example ofWhy should companies keep inventory low when working capital is scarce?Multi-echelon inventory optimization sets stock levelsWhich inventory optimization models use probability distributions for variables?Critics fault the EOQ model mainly for which weakness?Under an all-units discount, price is Rs 50 up to 1,000 units and Rs 45 for 1,001 to 5,000Under an incremental discount, units 1-100 cost Rs 30, 101-199 cost Rs 28. Cost of 150 uni