8. Consider a supply chain where a mamufacturer sells to a distributor who sells to a wholesaler who sells to a retailer. Last month, the retailer's weekly variance of demand was 4000 units. The weekly variance of orders was 5000; 8000; 12,000; and 17,000 units for the retailer, wholesaler, distributor, and mamufacturer, respectively. (Note that the variance of orders equals the variance of demand for that firm's supplier.) (8 Points) a) Calculate the bullwhip measure for the retailer. b) Calculate the bullwhip measure for the wholesaler.

Practical Management Science
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8. Consider a supply chain where a mamufacturer sells to a distributor who sells to a wholesaler who
sells to a retailer. Last month, the retailer's weekly variance of demand was 4000 units. The weekly
variance of orders was 5000: 8000; 12,000; and 17,000 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.) (8 Points)
a) Calculate the bullwhip measure for the retailer.
b) Calculate the bullwhip measure for the wholesaler.
Transcribed Image Text:Styles E Convert lo SmartArt- kasagapn DIWING 8. Consider a supply chain where a mamufacturer sells to a distributor who sells to a wholesaler who sells to a retailer. Last month, the retailer's weekly variance of demand was 4000 units. The weekly variance of orders was 5000: 8000; 12,000; and 17,000 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.) (8 Points) a) Calculate the bullwhip measure for the retailer. b) Calculate the bullwhip measure for the wholesaler.
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