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My most interesting takeaway, from the causes of the bullwhip effect: > Free return policies: Customers may overstate demands due to shortages, if customers ca
by wyattpeak 7y ago
My most interesting takeaway, from the causes of the bullwhip effect:
> Free return policies: Customers may overstate demands due to shortages, if customers cannot returns items, retailers will continue to exaggerate their needs, cancelling orders and causing in excess product or materials.
I was annoyed when I saw that stores were refusing to accept returns, thinking that they didn't want to suffer the cost of regretful hoarders trying to make right. Most people I talked to were pleased that hoarders were getting their comeuppance. But its effect on supply went completely over my head, and while I don't know if anyone else was aware, certainly nobody mentioned it.
- rrrrrrrrrrrryan 7y agoI don't know if the policy was about "hoarders getting their comeuppance" so much as disincentivizing hoarding in the first place.