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We have learned in class that \"the bullwhip effect can be a pervasive and expen

ID: 453751 • Letter: W

Question

We have learned in class that "the bullwhip effect can be a pervasive and expensive problem along the supply chain." Please answer following questions about the bullwhip effect: List 2 key activities that cause the bullwhip effect. How do they exacerbate the problems associated with the bullwhip effect? List 2 other key activities that can act as deterrents against the bullwhip effect. How do they minimize and/or eliminate the problems associated with the bullwhip effect? How can process integration help prevent minimize the bullwhip effect?

Explanation / Answer

Two activities that cause the bullwhip effect are:

These activities exacerbate the problem associated with bullwhip effect by delays in transmitting information and a lack of co-ordination up and down the supply chain.

Two other key activities that can act as deterrent against the bullwhip effect are:

Process integration can help prevent/minimize the bullwhip effect by allowing customers and suppliers collaborate to improve the quality and frequency of communication through the supply chain.

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