Question

Over the past 5? weeks, demand for wine at? Winston's Winery has been 950?, 2200?, 3300?, 1800?, and 1550 bottles. Winston has placed weekly orders for glass bottles of 1150?, 2400?, 3900?, 1050?, and 900 units.? (Recall that the sample variance of a data set can be found by using the VAR.S function in Excel or by plugging each value x of the data set into the? formula:

VarianceequalsStartFraction Summation from nothing to nothing left parenthesis x minus x overbar right parenthesis squared Over left parenthesis n minus 1 right parenthesis EndFraction ?,

where x overbar is the mean of the data set and n is the number of values in the? set.) ?

a) The variance of demand for? Winston's Winery is nothing ?(round your response to the nearest whole? number).

b) The variance of orders from? Winston's Winery for glass bottles is.

c) The bullwhip measure for glass bottles for? Winston's Winery is.

d) Winston's Winery is providing an amplification effect or smoothing effect in its supply chain?

Answer 1

Sample variance can be found out using Excel.

Formulas used

We have used the VAR.S function to find the sample variance.

Ans a) The variance of demand for Winston's Winery = 766750

Ans b) The variance of orders for Winston's Winery = 1633250

Ans c)

Bullwhip measure = Variance of orders/Variance of demand

= 1633250 / 766750

= 2.13

Ans d)

Winston's Winery is providing an amplification effect in its supply chain as greater variations in the orders by them, lead to much greater variations in the supplier side.