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Author Question: A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. ... (Read 30 times)

londonang

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Question 1

The "bullwhip" effect
◦ occurs because of distortions in information in the supply chain.
◦ occurs as orders are relayed from retailers to wholesalers.
◦ increases the costs associated with inventory in the supply chain.
◦ results in increasing fluctuations at each step of the sequence.
◦ all of the above.

Question 2

A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributer, the distributer assumes the large size is a trend, not a one-time event. The distributer therefore places an even larger order with the lobsterman. This is the result of
◦ CPFR.
◦ vendor-managed inventory.
◦ the bullwhip effect.
◦ a pass-through facility.
◦ double marginalization.


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Marked as best answer by londonang on Dec 3, 2019

wilsonbho

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londonang

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Reply 2 on: Dec 3, 2019
Great answer, keep it coming :)


kswal303

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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