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You work for a food distributor. One of the local grocery stores that purchases from you sometimes orders 50 cases of soda, sometimes 30 cases, and sometimes 100 cases. You want to ensure you can always meet their demand, so you keep 150 cases in stock in your warehouse. This is an example of ___________.

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sandlee09

Answer:

The Bullwhip Effect

Explanation:

According to my research on the different strategies used by food distributors and whole sale warehouses, I can say that based on the information provided within the question this is an example of The Bullwhip Effect. This is defined as an increase in inventory in response to a customers variety of demand as the order moves up the supply chain.

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