Which of the following tactics effectively reduces the bullwhip effect?
Which of the following tactics effectively reduces the bullwhip effect?
Reducing lead times among trading partners effectively reduces the bullwhip effect. The bullwhip effect arises from demand variability being amplified as orders move up the supply chain. Shorter lead times lead to quicker and more accurate responses to changes in demand, reducing the discrepancies between actual demand and supply chain orders.
Reducing lead times among trading partners is the most effective tactic for reducing the bullwhip effect.