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3 years ago

What is the bullwhip effect and how does it relate to lack of coordination in a supply chain?

Business

1 answer:

rewona [7]3 years ago

6 0

Answer:

The bullwhip effect happens when retailers or other members of the supply chain overestimate a sudden increase in demand, and this causes a chain reaction in all the other participants of the supply chain that start requesting higher quantities of goods or materials for production. E.g. the fidget spinner was a very popular fad and its producers probably didn't anticipate how large the demand would be. Once the product became extremely popular, everyone wanted to sell fidget spinners. This caused an increase in the order quantities of all the supply chain. Once the fad faded out, all this momentum stopped and many stores, distributors, wholesalers, and even factories were left with huge unsold stocks of fidget spinners.

When the supply chain is well coordinated, there is little chance for some retailers or distributors to over react and want more product just in case. If your supply is guaranteed, then it would take some extraordinary increase in demand to make you want to increase your purchase orders. But if your supply chain is not well coordinated, you might fear that you will lose a lot of sales and other competitors will make them. Then you get anxious and start ordering large quantities.

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Bramble Corp. reported the following items for 2016: Income tax expense $62000 Contribution margin 180000 Controllable fixed cos

Ivenika [448]

Answer:

controllable margin = $100,000

Explanation:

given data

Income tax expense = $62000

Contribution margin = 180000

fixed costs = 80000

Interest expense = 68000

Total operating assets = 40000

to find out

How much is controllable margin

solution

we get here controllable margin that is express as

controllable margin = contribution - controllable fixed cost ....................1

put here value we get

controllable margin = 180000 - 80000

controllable margin = $100,000

4 0

3 years ago

Sold merchandise on credit to Rondo Distributors, for $1,200, terms n/30. The cost of the merchandise was $720. 8 Purchased merc

Iteru [2.4K]

Answer:

See the explanation.

Explanation:

Account receivable Rondo Distributors debit $1,200

Sales revenue credit $1,200

Note: To record the merchandise sales on account. As the company used the periodic inventory system, we do not need to give the cost of goods sold journals.

Purchase debit 10,000

Accounts payable credit 10,000

Note: To record the purchase on account.

Delivery expense debit $525

Cash credit $525

Note: To record the payment of the delivery expense.

8 0

3 years ago

A new project would require an immediate increase in raw materials in the amount of $17,000. The firm expects that accounts paya

RUDIKE [14]

Answer:

C.) $10,000

Explanation:

Working capital is the net of current asset and current liabilities. it is a financial measure that gives insight into how liquid a company is.

Raw materials also known as Inventory and accounts payable are both current assets and current liabilities respectively hence, Incremental investment in working capital if the project is accepted

= $17,000 - $7,000

= $10,000

5 0

3 years ago

Read 2 more answers

Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17 and received an in

galina1969 [7]

Answer:

c. $6,076

Explanation:

Calculation for what Alison should record the purchase

Purchase=$6,200 ×(100%-2%)

Purchase=$6,200 ×98%

Purchase=$6,076

Therefore if Alison uses the net method to record purchases she should record the purchase at:$6,076

7 0

3 years ago

You want to make sure your account reflects the spending you’ve actually done, so you pull receipts out of your clothes pockets

erica [24]

Based on the information given, the items that can be reflected in the account activity but that the person cannot account for include bank charges and transactions involving the use of ATMs.

From the complete information, it should be noted that there are bank charges that are charged by the banks. In this case, the account may not reflect the spending that has actually been done.

Also, there are taxes that are charged on the goods that the person bought. Therefore, this will be reflected on the account activity and will give rise to a higher value than the amount that the person actually spends.

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brainly.com/question/25675366

3 0

2 years ago