Suppose That in Month 1,both the Retailer and the Wholesaler

Multiple Choice

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 1000 units.If the wholesaler then decreases its order size in month 2 by 700 units,which of the following is TRUE?

A) The wholesaler is contributing to the bullwhip effect.
B) The wholesaler is providing a dampening (anti-bullwhip) effect.
C) The bullwhip measure for the wholesaler equals 0.70.
D) Neither amplification nor smoothing is present.
E) The wholesaler is providing both amplification and smoothing.