Exam IIA-CIA-Part3 Topic 1 Question 63 Discussion

Actual exam question for IIA's IIA-CIA-Part3 exam
Question #: 63
Topic #: 1
The bullwhip, or whiplash, effect on inventories begins when retailers face uncertain demand from consumers caused by randomness in buying habits. It can be avoided by:

Suggested Answer: D Vote an answer

Sharing information about sales, inventory, pricing, advertising campaigns, and sales forecasts by all functions and organizations in the supply chain moderates demand uncertainty for all parties. The desired results are a) minimization of inventories held by suppliers, manufacturers, and retailers; b) avoidance of stackouts; c) fewer rush orders; and d) production as needed by retailers.

by Solomon at Oct 02, 2025, 10:59 PM

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