What are the characteristics of the Bullwhip affect?
What is Average Aggregate Inventory Value?
What is cost effective supplier based on quantity, price, carrying costs and administrative costs?
Expert Answer
Characteristics of bullwhip effect are that there is a. Huge variance between the supplier order and sales to end customers, excess inventory with distributors and oscillating demands from customers.
Average aggregate inventory value is the sum total value of all inventory items which is calculated at cost.
Instead of reducing cost with suppliers , the focus should be on value creation.