Question

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 __________.

Answer 1

Answer: Bullwhip effect

Explanation: Bullwhip effect is describes as the effect that is caused in supply chain. The changed demands of the customer results in the more stock requirement for supply chain so that the needs of the consumers can be fulfilled.

The increment in supply chain is seen from retailer field to supplier field. According to the situation mentioned in question , bullwhip effect is followed by the restaurant to promote the lobster dish by selling them in large units.Thus, the supply chain and related process face large supply of lobster and service.