Question
In: Operations Management
Consider the supply chain illustrated below: manufacturer->distributor->wholesaler->retailer. Last year the retailer's weekly variance of demand was...
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
Solutions
Expert Solution
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
keosha answered 2 years agoRelated Solutions
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