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XYZ, Inc.

XYZ, Inc. is a manufacturer and distributor of fishing gear. XYZ relies on poorly-executed forecasts from its retail partners, which leads to exaggerated demand. This in turn leads to XYZ experiencing increased inventory, material handling concerns, and difficulties managing its accounts payable. Which of the following BEST describes what is occurring in this situation?

A.

Bullwhip effect

B.

Speculative buying

C.

Adaptive smoothing

D.

Backflush

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