Which of the following is NOT a major cause of the bullwhip effect?

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Prepare for UCF's MAR3203 Supply Chain and Operations Management Exam 4 with essential study materials. Review concepts with flashcards and multiple-choice questions, complete with explanations. Maximize your exam readiness today!

Shared demand information is a practice where various participants in the supply chain, such as manufacturers, distributors, and retailers, communicate and share insights about demand trends and forecasts. This transparency helps align the decision-making process among all parties involved, resulting in more accurate forecasting and inventory management. By having access to the same information, supply chain members can make better-informed decisions, reducing the variability caused by individual interpretations of demand.

In contrast, the other factors listed contribute significantly to the bullwhip effect. Fluctuating demand leads to overreactions in order quantities, while rationing and shortage gaming cause supply chain partners to inflate their orders to secure more product during limited availability. Order batching, or the practice of accumulating orders before placing them, further adds to the variability in demand as it can create spikes in order volumes at certain times.

Therefore, shared demand information serves as a stabilizing force in the supply chain and is not a cause of the bullwhip effect.