AMCO is a supplier of specialty fake-parts to the fake-widget industry. AMCO does not face

Question: AMCO is a supplier of specialty fake-parts to the fake-widget industry. AMCO does not face a lot of competition, given its unique know-how making fake-parts. The company’s logistics manager is suffering with violent bullwhip in the orders received from its main customers. All of the issues below happen at AMCO. Which of them is NOT a cause for the bullwhip
AMCO is a supplier of specialty fake-parts to the fake-widget industry. AMCO does not face a lot of competition, given its unique know-how making fake-parts. The company’s logistics manager is suffering with violent bullwhip in the orders received from its main customers. All of the issues below happen at AMCO. Which of them is NOT a cause for the bullwhip in orders received?
A. Transportation cost of fake-parts to AMCO suppliers can be reduced by only shipping large lots to customers in full truckloads.
B. AMCO marketing director rewards sales staff for meeting monthly targets on sales to fake-widget manufacturers.
C. Fake-parts are hard to make and sometimes can be defective, so the Manufacturing Manager established the practice of 100% inspection of all fake-parts produced.
D. AMCO managers do not have visibility of consumer demand for fake-widgets.

The bullwhip effect is defined as the phenomenon of demand distortion. It results from fluctuations in demand at the retailer…View the full answer