3. Sorlini Pasta sells pasta throughout Italy. Which of the following is the str

Question

3. Sorlini Pasta sells pasta throughout Italy. Which of the following is the strongest evidence that Sorlini Pasta is suftering from the bullwhip OThey hold a considerable amount of inventory, enough to satisfy their average demand for the next four weeks. OSorlini sells both tresh and dry pasta products through different types of retailers. OJust before a snowstorm in the northerm part of the country, sales of pasta increased considerably. OMost retailers only carry a subset of all of the pastas Sorlini offers. OThe volatility of the orders Sorlini receives from its distributors is greater than the volatility of pasta demand at retailers OPasta consumption per capita in southem Italy is higher than in northen Italy. References Multiple Choice (IRT) Difficulty: 2 Medium Learning Objective: 11-04 Explain the sources of variability with in a supply chain and some approaches for mitigating variability

Explanation / Answer

The strongest evidence that Sorlini Pasta is suffering from the bullwhip effect is -

The volatility of the orders Sorlini receives from its distributors is greater than the volatility of pasta demand at retailers.

Bullwhip effect is the result of information assymetry as it passes from the downstream supply chain partner viz. retailer to upstream supply chain partners viz. distributor, manufacturer, supplier. The volatility increases as the information passes from retailer to distributor and so on. Hence, this is an evidence for bullwhip effect.

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