APICS Certified Supply Chain Professional (CSCP) — Question 384

Which of the following tactics effectively reduces the bullwhip effect?

Answer options

• A. Reducing lead times among trading partners
• B. Buying large quantities for a substantial discount
• C. Increasing safety stock levels
• D. Increasing the level of advertising

Correct answer: A

Explanation

Reducing lead times among trading partners allows for quicker response to demand changes, thereby minimizing the bullwhip effect. The other options, such as buying in bulk or increasing safety stock, can actually exacerbate fluctuations in inventory levels rather than stabilize them.