APICS Certified Supply Chain Professional (CSCP) — Question 518

Bullwhip effect can be reduced by which of the following combinations of actions?

Answer options

• A. Information sharing, batch ordering, variable pricing
• B. Shortage gaming, frequent ordering, consistent pricing
• C. Information sharing, frequent ordering, variable pricing
• D. Information sharing, frequent ordering, consistent pricing

Correct answer: D

Explanation

The correct answer is D because information sharing and frequent ordering help improve demand forecasting and reduce variability in supply chain orders. Options A and C include variable pricing, which does not directly address the core causes of the bullwhip effect, while B incorporates shortage gaming, which can exacerbate the problem.