Consider the supply chain illustrated below:ManufacturerDistributorWholesalerRetailerLast year the retailer's weekly variance of demand was 190 units. The variance oforders was 490, 610, 730, and 1,320 units, for the retailer, wholesaler, distributor,and manufacturer, respectively. (Note that the variance of orders equals the varianceof demand for that firm's supplier.)a) The bullwhip measure for the retailer isdecimal places.)b) The bullwhip measure for the wholesaler istwo decimal places.)(Enter your response rounded to two(Enter your response rounded toc) The bullwhip measure for the distributor is ☐. (Enter your response rounded totwo decimal places.)d) The bullwhip measure for the manufacturer istwo decimal places.)e) In this supply chain, thebullwhip effect.(Enter your response rounded toappears to be contributing the most to the

Bullwhip effects starts from the retailer and goes upto manufacturer. It is variance of orders that…

Answered: Consider the supply chain illustrated…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Consider the supply chain illustrated here:Last year, the retailer's weekly variance of demand was 200 units. The variance of orders was 500, 600, 750, and I ,350 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) Calculate the bullwhip measure for the retailer.b) Calculate the bullwhip measure for the wholesaler.c) Calculate the bullwhip measure for the distributor.d) Calculate the bullwhip measure for the manufacturer.e) Which firm appears to be contributing the most to the bullwhip effect in this supply chain?
Consider the supply chain illustrated below: Last year, the retailer’s weekly variance of demand was 200 units. The variance of orders was 500, 600, 750, and 1,350 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) Calculate the bullwhip measure for the retailer. b) Calculate the bullwhip measure for the wholesaler. c) Calculate the bullwhip measure for the distributor. d) Calculate the bullwhip measure for the manufacturer. e) Which firm appears to be contributing the most to the bullwhip effect in this supply chain?
Consider a three-firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer's demand over an 8-week period was 110 units each of the first 2 weeks, 190 units each of the second 2 weeks, 310 units each of the third 2 weeks, and 400 units each of the fourth 2 weeks. The following table presents the orders placed by each firm in the supply chain. Notice, as is often the case in supply chains due to economies of scale, that total units are the same in each case, but firms further up the supply chain (away from the retailer) place larger, lessfrequent, orders. WEEK RETAILER MANUFACTURER SUPPLIER 1 110 220 600 2 110 3 190 380 4 190 5 310 620 1420 6 310 7 400 800 8 400 a) What is the bullwhip measure for the retailer? The bullwhip measure for the retailer is ______. (Enter your response rounded to two decimal places.) b) What is the bullwhip measure for the manufacturer? The bullwhip measure for the…
Consider a three-firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer's demand over an 8-week period was 110 units each of the first 2 weeks, 220 units each of the second 2 weeks, 280 units each of the third 2 weeks, and 400 units each of the fourth 2 weeks. The following table presents the orders placed by each firm in the supply chain. Notice, as is often the case in supply chains due to economies of scale, that total units are the same in each case, but firms further up the supply chain (away from the retailer) place larger, lessfrequent, orders. Week Retailer Manufacturer Supplier 1 110 220 660 2 110 3 220 440 4 220 5 280 560 1360 6 280 7 400 800 8…
Consider a three-firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer's demand over an 8-week period was 90 units each of the first 2 weeks, 220 units each of the second 2 weeks, 280 units each of the third 2 weeks, and 400 units each of the fourth 2 weeks. The following table presents the orders placed by each firm in the supply chain. Notice, as is often the case in supply chains due to economies of scale, that total units are the same in each case, but firms further up the supply chain (away from the retailer) place larger, less frequent, orders. Week Retailer Manufacturer Supplier1 90 180 6202 90 0 03 220 440 04 220 0 05 280 560 1,3606 280 0 07 400 800 08 400 0 0 a) What is the bullwhip measure for the retailer? The bullwhip measure for the retailer is ??? (Enter your response rounded to two decimal places.) b) What is the bullwhip measure for the…
We have seen the importance of demand forecasting affecting supply chain decisions in many ways. How does the reliability of demand forecasting affect a model to place warehouses for customers? Knowing that there is no specific answer that is always appropriate, how good (measured in percent close) do forecasts have to be in order to be used for network modeling?
I need a detailed assistance to solve the following problem in: Operations Analysis. 1) A trucking company maintains an inventory of trucks that varies monthly. The ending inventory of trucks during the first 8 months of the year (January to August) were 26, 38, 31, 22, 13, 9, 16, 5, respectively. The monthly inventory holding cost is proportional to the monthly ending inventory. Trucks incur the following costs Each truck costs the company $8,000. Interest rate on the cost of capital is 20% per annum (annually). Each truck incurs a storage cost of 3% per annum of the truck cost. Each truck incurs a liability insurance cost of 2% per annum of the truck cost. The carrying cost is the total of all costs (capital, storage and insurance.) What is the monthly carrying cost per truck? What is the total carrying cost incurred by the company over the 8 months (January to August)? What is the estimated average annual carrying cost?
Lenka's Fresh Snacks (LFS), the producer of the Lenka Bar, is a granola bar manufacturer based in Yoe, Pennsylvania. LFS produces a number of granola bars for its 450 retail partners across the eastern seaboard, manufacturing them in its 4,000-square-foot facility. According to Steve Rasovsky, CEO, the best-selling flavors for Lenka Bar are peanut butter, and nuts and berries. 8 As LFS continues to expand, it has decided to add a new flavor to its product line: chia seeds and almonds. These ingredients have different order quantities and storage requirements than other ingredients already used in manufacturing. As it considers how to move forward, LFS must consider a number of issues regardingwarehousing and storage. What are some of the key priorities that it must consider?
Last year, the retailer's weekly variance of demand was 100 units. The variance of orders was 250, 300, 400 and 600 units for the retailer, wholesalers, distributing and manufacturer. respectively (note that the variance of orders equals the variance of demand for that firm's supplier) A. calculate the bullwhip measures for the retailer, wholesales, distributor and manufacturer? B. what is the bullwhip effect for the entire supply chain? C. provide actionable guidelines (with anticipated bullwhip measures of each point on how to reduce bullwhip measures to 2 in the supply chain? All your calculations has to be done on paper and has to be done on excel sheets. Each question you must show the formula used to calculate the answer in excel sheet in order to use excel in exam.
Consider the supply : Last year, the retailer’s weekly variance of demand was 200 units.The variance of orders was 500, 600, 750, and 1,350 units for theretailer, wholesaler, distributor, and manufacturer, respectively.(Note that the variance of orders equals the variance of demandfor that firm’s supplier.)a) Calculate the bullwhip measure for the retailer.b) Calculate the bullwhip measure for the wholesaler.c) Calculate the bullwhip measure for the distributor.d) Calculate the bullwhip measure for the manufacturer. e) Which firm appears to be contributing the most to the bull-whip effect in this supply chain?
The Fish House (TFH) in Norfolk, Virginia, sells fresh fish and seafood. TFH receives daily shipments of farm-raised trout from a nearby supplier. Each trout costs $2.45 and is sold for $3.95. To maintain its reputation for freshness, at the end of the day TFH sells any leftover trout to a local pet food manufacturer for $1.25 each. The owner of TFH wants to determine how many trout to order each day. Historically, the daily demand for trout is: Demand 10 11 12 13 14 15 16 17 18 19 20 Probability 0.02 0.06 0.09 0.11 0.13 0.15 0.18 0.11 0.07 0.05 0.03 a. Construct a payoff matrix for this problem. b. How much should the owner of TFH be willing to pay to obtain a demand forecast that is 100% accurate? give a clear explanation for (b)

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