ExamGecko
Question list
Search
Search

List of questions

Search

Question 235 - CSCP discussion

Report
Export

Which of the following methods is used to minimize the bullwhip effect?

A.
Outsourcing noncore business activities
Answers
A.
Outsourcing noncore business activities
B.
Reducing the number of stock keeping units (SKUs)
Answers
B.
Reducing the number of stock keeping units (SKUs)
C.
Reducing lead time
Answers
C.
Reducing lead time
D.
Increasing factory inventory
Answers
D.
Increasing factory inventory
Suggested answer: C

Explanation:

The bullwhip effect refers to the phenomenon where small fluctuations in demand at the consumer level cause progressively larger fluctuations in demand at the wholesale, distributor, manufacturer, and raw material supplier levels. One effective method to minimize the bullwhip effect is reducing lead time. Shorter lead times allow for more frequent and smaller replenishment orders, which align more closely with actual demand patterns and reduce the impact of demand variability. This helps in smoothing out the supply chain and reducing excess inventory and stockouts. Outsourcing noncore activities, reducing SKUs, and increasing factory inventory do not directly address the issue of demand amplification like reducing lead times does.

Lee, H. L., Padmanabhan, V., & Whang, S. (1997). The Bullwhip Effect in Supply Chains. MIT Sloan Management Review.

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. McGraw-Hill.

asked 16/09/2024
Dean Pillay
47 questions
User
Your answer:
0 comments
Sorted by

Leave a comment first