Question

Suppose that your customer places a larger order than they usually would. Unknown to you, they...

Suppose that your customer places a larger order than they usually would. Unknown to you, they have simply changed their safety stock levels and orders will go back to normal after this round of orders. After our discussions about Bullwhip effect, the best response would be to:

A.) Increase our safety stock levels too

B.) Communicate with the customer

C.) Increase production capacity

D.) Increase lead time to the customer

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Answer #1

Increased lead for the following situation will lead to reduced bullwhip effect as it prevents distortion. Hence the correct option is d. Increase lead time to the customer

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