A Restaurant Runs a Special Promotion on Lobster and Plans

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 distributor, the distributor assumes the large size is a trend, not a one-time event. The distributor therefore places an even larger order with the lobsterman. This behavior is the result of which of the following?

A) double marginalization
B) the bullwhip effect
C) CPFR
D) postponement
E) vendor-managed inventory

Correct Answer:

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