Author Question: A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. ... (Read 353 times)

londonang · **on:** Dec 3, 2019

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.

wilsonbho · **Reply #1 on:** Dec 3, 2019

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