If the Variance of Orders of a Manufacturer Equals 800

Multiple Choice

If the variance of orders of a manufacturer equals 800, and the variance of orders of its supplier equals 850, what is happening at this part of the supply chain?

A) The bullwhip effect is present.
B) The supplier is providing a dampening (anti-bullwhip) effect.
C) The bullwhip measure for the supplier equals 1.067
D) Neither amplification nor smoothing is present.
E) Both amplification and smoothing are present.