Question

A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributer, the distributer assumes the large size is a trend, not a one-time event. The distributer therefore places an even larger order with the lobsterman. This is the result of

A) double marginalization

B) the bullwhip effect

C) CPFR

D) a pass-through facility

E) vendor-managed inventory

Answer

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