Exam L6M10 Topic 1 Question 24 Discussion

Actual exam question for CIPS's L6M10 exam
Question #: 24
Topic #: 1
A large organization wants to reduce its logistics costs and increase productivity by implementing economies of scale and batching in its operations. What is the potential negative consequence they should be cautious about?

Suggested Answer: B Vote an answer

The bullwhip effect is a potential risk when implementing economies of scale and batching. It occurs when demand variability is amplified across the supply chain, leading to inefficiencies and information distortions. [P-18]

by Dinah at May 10, 2026, 05:01 AM

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