Suppose that in month 1, both the retailer and the wholesaler in a supply chain ordered 20,000 units. Then in month 2, the retailer decreases its order size by 500 units. If the wholesaler then decreases its orde size in month 2 by 700 units, which of the following is TRUE? O A. The wholesaler is providing both amplification and smoothing. OB. The bullwhip measure for the wholesaler equals 0.70. O C. The wholesaler is contributing to the bullwhip effect. O D. The wholesaler is providing a dampening (anti-bullwhip) effect. OE. Neither amplification nor smoothing is present.

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Suppose that in month 1, both the retailer and the wholesaler in a supply chain ordered 20,000 units. Then in month 2, the retailer decreases its order size by 500 units. If the wholesaler then decreases its order
size in month 2 by 700 units, which of the following is TRUE?
O A. The wholesaler is providing both amplification and smoothing.
O B. The bullwhip measure for the wholesaler equals 0.70
OC. The wholesaler is contributing to the bullwhip effect.
O D. The wholesaler is providing a dampening (anti-bullwhip) effect.
OE. Neither amplification nor smoothing is present.
Transcribed Image Text:Suppose that in month 1, both the retailer and the wholesaler in a supply chain ordered 20,000 units. Then in month 2, the retailer decreases its order size by 500 units. If the wholesaler then decreases its order size in month 2 by 700 units, which of the following is TRUE? O A. The wholesaler is providing both amplification and smoothing. O B. The bullwhip measure for the wholesaler equals 0.70 OC. The wholesaler is contributing to the bullwhip effect. O D. The wholesaler is providing a dampening (anti-bullwhip) effect. OE. Neither amplification nor smoothing is present.
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