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A Restaurant Runs a Special Promotion on Lobster and Plans

Question 130

Multiple Choice

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

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