Which of the following is true about the bullwhip effect? Group of answer choices A.) The bullwhip effect can be eliminated by hiring better managers. B.) Greater coordination by feeding back actual demand information throughout the supply chain can reduce the bullwhip effect. C.) Small changes in demand at the retail level create even smaller changes in orders back up the supply chain. D.) Increases in total replenishment lead times will tend to reduce the bullwhip effect.

• ) Greater coordination by feeding back actual demand information throughout the supply chain can reduce the bullwhip effect.

Explanation:

The bullwhip effect refers to the increasing swings in inventory as a result of shifts in customer demand as one moves further up the supply chain. To improve the overall efficiency of the supply chain, managers use varying strategies to reduce this effect. Among the strategies that are commonly used includes collaborating with customers and supplier, improving forecast accuracy in order to deal with actual demand rather than forecasts, enabling fast decisions with visibility and insight and lastly, adopting a demand driven supply chain management approach. Forecasts are usually inaccurate, so when actual demand is availed, there will be less panic for the suppliers which prevents overreaction and excess inventory.