The amplification occurs due to: (1) Order batching – each tier rounds up orders to truckload quantities. (2) Price fluctuations – forward buying during discounts. (3) Rationing – if supply is short, customers over-order. Mitigation strategies: (a) Share point-of-sale (POS) data across all tiers. (b) Implement vendor-managed inventory (VMI).
Concepts like Safety Stock , inventory turns, and the Economic Order Quantity (EOQ) model. supply chain management midterm exam questions
Elements : Collaboration, Connectivity, Customer-centricity, Control, and Compliance [11]. The amplification occurs due to: (1) Order batching