What is the bullwhip effect? How is it caused, and what impacts can it have on a firm?
What will be an ideal response?
A successful answer will note that the bullwhip effect is the amplification of orders as one moves up the supply chain away from the customer. It is caused by issues such as demand forecast updating, order batching, price fluctuations, and rationing or shortage gaming. The bullwhip effect can cause problems with capacity, inventory control, scheduling, etc.
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Rivera Inc, a leading mobile manufacturer in the United States, manufactures a new product similar to its existing line of high-end smart phones to meet the demands for a low-cost product in the developing countries
They also plan to use new ads that are more sensitive to those countries. In this case the product marketing strategy used by Rivera is referred to as ________. A) mono adaption B) product extension/ communication adaptation C) dual extension D) dual adaptation
If the unit selling price is $40, the volume of sales is $3,000,000, sales at the break-even point amount to $2,500,000, and the maximum possible sales are $3,300,000, the margin of safety is 11,500 units
Indicate whether the statement is true or false
Organizational mission is a broader concept than the goods/service category
Indicate whether the statement is true or false
Inventory is considered a source of funds because of the revenue it brings in.
Answer the following statement true (T) or false (F)