3. Consider the supply chain illustrated below: 1200 600 1150 Manufacturer Wholesaler Retailer 500 Last year, the retailer's weekly variance of demand was 500 units. The variance of orders was 600, 1200, and 1150 units for the retailer, wholesaler, 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. Is the bullwhip effect present here? b) Calculate the bullwhip measure for the wholesaler. Is the bullwhip effect present here? c) Calculate the bullwhip measure for the manufacturer. Is the bullwhip effect present here? d) Which firm appears to be contributing the most to the bullwhip effect in this supply chain? Why?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...
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3. Consider the supply chain illustrated below:
1200
600
1150 Manufacturer
Wholesaler
D
Retailer
500
Last year, the retailer's weekly variance of demand was 500 units. The variance of orders
was 600, 1200, and 1150 units for the retailer, wholesaler, 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. Is the bullwhip effect present here?
b) Calculate the bullwhip measure for the wholesaler. Is the bullwhip effect present here?
c) Calculate the bullwhip measure for the manufacturer. Is the bullwhip effect present
here?
d) Which firm appears to be contributing the most to the bullwhip effect in this supply
chain? Why?
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Transcribed Image Text:3 / 5 | 3. Consider the supply chain illustrated below: 1200 600 1150 Manufacturer Wholesaler D Retailer 500 Last year, the retailer's weekly variance of demand was 500 units. The variance of orders was 600, 1200, and 1150 units for the retailer, wholesaler, 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. Is the bullwhip effect present here? b) Calculate the bullwhip measure for the wholesaler. Is the bullwhip effect present here? c) Calculate the bullwhip measure for the manufacturer. Is the bullwhip effect present here? d) Which firm appears to be contributing the most to the bullwhip effect in this supply chain? Why? JUN 16 tv ♫ S 000 000 F4 ܀ F5 (O 100% + | MacBook Air F6 ◄◄ F7 4. ㅎ. DII F8 DD F9
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ISBN:
9781337406659
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Publisher:
Cengage,