1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Brums [2.3K]
3 years ago
9

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.

You might be interested in
In the late 1970s Federal Reserve Chairman Paul Volcker contracted the money supply to reduce the rate of inflation. One result
xxTIMURxx [149]

Answer: to increase interest rates which reduced aggregate demand.

Explanation:

Since the money supply was contracted to reduce the rate of inflation, this will lead to increase interest rates which reduced aggregate demand.

In this case as a result of the increase in the interest rate, people will prefer to save their money in the banks and thus will result in less money in circulation which ultimately reduces the demand for goods and services.

8 0
2 years ago
Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. Microeconomics
tatuchka [14]

Answer and Explanation:

Economy is divided into two main fields: <em>Microeconomics and Macroeconomics</em>. Microeconomics studies the decisions of individuals and businesses while Macroeconomics is in charge of analyzing the economy as a whole including decisions made by governments and their countries. Thus:

A) <em>The effect of government regulation on a monopolist's production decisions (Macroeconomics). </em>

B) <em>The optimal interest rate for the Federal Reserve to target (Macroeconomics). </em>

C) <em>The government's decision on how much to spend on public projects (Macroeconomics).</em>

4 0
3 years ago
The research and development division of Anchor Inc., a manufacturing firm, has a sizeable number of engineers for its employees
Phoenix [80]

Answer:

The correct answer is letter "C": Orientation.

Explanation:

The primary organization-specific factors are <em>orientation, size of the organization, </em>and<em> degree of centralization</em>. Orientation <em>refers to the function of a company that controls the decisions in regards to purchases</em>. The size of the organization implies decision making will be more centralized in larger firms while more decentralized in smaller firms. Finally, the degree of centralization states that even in highly autonomous corporations, some purchases might be subject to the approval of a manager who confirms the need for the assets being acquired.

<em>Because in Anchor Inc. the purchase decisions are made by engineers the orientation organization-specific factor is more relevant in that company</em>.

6 0
2 years ago
Suppose that when the price of a good is $15, the quantity demanded is 40 units, and when the price falls to $6, the quantity in
Paraphin [41]

Answer:

(A) -5/6

Explanation:

Price elasticity of demand = % change in quantity demanded ÷ % change in price

% change in quantity demanded = (60-40)/40 × 100 = 20/40 × 100 = 50%

% change in price = ($6-$15)/$15 × 100 = -$9/$15 × 100 = -60%

Price elasticity of demand = 50% ÷ -60% = -5/6

8 0
3 years ago
Mention two benefits of positive values at the work place​
Trava [24]

giving health care and paying salary

6 0
3 years ago
Other questions:
  • Your car needs a new engine and it cost $1,000. you currently have $600 to invest at 7% compound annually, how long will you hav
    11·1 answer
  • What is the first step in financial planning?
    5·2 answers
  • Klara wants to compare the price of a wallet she saw at Nordstrom Rack with other stores that may have the same wallet. She loca
    13·1 answer
  • KO Marketing Company, a U.S. firm, signs a contract with Librador Corporacion, a Chilean firm, to give Librador the right to use
    7·2 answers
  • An agingminusofminusaccountsminusreceivable indicates that the amount of uncollectible accounts is​ $3,910. The Allowance for Un
    11·2 answers
  • On January 1, Martinez Inc. issued $3,000,000, 11% bonds for $3,195,000. The market rate of interest for these bonds is 10%. Int
    12·1 answer
  • Karen Meyer owns and operates Crystal Cleaning Company. Recently, Meyer withdrew $10,000 from Crystal Cleaning, and she contribu
    5·1 answer
  • When the price of Nike tennis shoes goes from $100 to $80, the quantity demanded increases from 20 to 30 million. Over this pric
    6·1 answer
  • Pedee Company's inventory turnover in days is 80 days. Which of the following actions could help to improve that ratio? a.Increa
    9·1 answer
  • 1. Which of the following people is/are legally required to file a tax return?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!