Suppose that in month 1, both the retailer and the wholesaler in a supply chain ordered 20,000 units. Then in month 2, the retailer decreases its ordersize by 500 units. If the wholesaler then decreases its order size in month 2 by 700 units, which of the following is TRUE?OA. The wholesaler is contributing to the bullwhip effect.B. Neither amplification nor smoothing is present.OC. The bullwhip measure for the wholesaler equals 0.70.D. The wholesaler is providing both amplification and smoothing.O E. The wholesaler is providing a dampening (anti-bullwhip) effect.

The bullwhip effect in supply chain management is a phenomenon where order variances are amplified…

Answered: Suppose that in month 1, both the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 40P

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Suppose that in month 1, both the retailer and the wholesaler in a supply chain ordered 20,000 units. Then in month 2, the retailer decreases its order size by 500 units. If the wholesaler then decreases its order size in month 2 by 700 units, which of the following is TRUE?