A retailer operates a distribution center (DC) that serves 250 retail stores. The retail stores sell individual units but shipments from the DC to the stores are done in case quantities (i. E., each store orders from the DC an integer number of cases). Orders submitted to suppliers for delivery to the DC are done in pallet quantities. Each pallet holds multiple cases, with the actual number of cases depending on the size and weight of the product. Which of the following statements is true?
A. The bullwhip effect is likely to be present in this supply chain because there is evidence of forward buying.
B. The bullwhip effect is not likely to be present in this supply chain because the retailer is consistent in the order multiples used (i. E., always ordering in case or pallet quantities).
C. The bullwhip effect is likely to be present in this supply chain because there is evidence of order batching effects.
D. The bullwhip effect is not likely to be present in this supply chain because the same firm operates both the DC and the retail stores, and can therefore better coordinate ordering.