Question

Consider the supply chain illustrated below:

manufacturer->distributor->wholesaler->retailer.

Last year the​ retailer's weekly variance of demand was 210 units. The variance of orders was 480​, 590​, 770, and 1,320 ​units, for the​ retailer, wholesaler,​ distributor, and​ manufacturer, respectively.​ (Note that the variance of orders equals the variance of demand for that​ firm's supplier.)

A) The bullwhip measure for the retailer is

B) The bullwhip measure for the wholesaler is

C) The bullwhip measure for the distributor is

D) The bullwhip measure for the manufacturer is

Answer 1

Answer A:- Bullwhip measure for retailers = variance of orders/variance of demand

Bullwhip measure for retailers = 480/210

Bullwhip measure for retailers = 2.29

Answer B:- Bullwhip measure for wholesaler = variance of orders/variance of demand

Bullwhip measure for wholesaler = 590/480

Bullwhip measure for wholesaler = 1.23

Answer C:- Bullwhip measure for distributor= variance of orders/variance of demand

Bullwhip measure for distributor= 770/590

Bullwhip measure for distributor= 1.31

Answer D:- Bullwhip measure for manufacturer= variance of orders/variance of demand

Bullwhip measure for manufacturer= 1320/770

Bullwhip measure for manufacturer= 1.71