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 410 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. Click the icon to view the orders placed by each firm in the supply chain. i Click the icon to view the ways of calculating the variance. a) What is the bullwhip measure for the retailer? The bullwhip measure for the retailer is 1.00 (Enter your response rounded to two decimal places.) b) What is the bullwhip measure for the manufacturer? The bullwhip measure for the manufacturer is 6.97. (Enter your response rounded to two decimal places.) c) What is the bullwhip measure for the supplier? The bullwhip measure for the supplier is 18.73. (Enter your response rounded to two decimal places.)

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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 410 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.
Click the icon to view the orders placed by each firm in the supply chain.
i Click the icon to view the ways of calculating the variance.
a) What is the bullwhip measure for the retailer?
The bullwhip measure for the retailer is 1.00 (Enter your response rounded to two
decimal places.)
b) What is the bullwhip measure for the manufacturer?
The bullwhip measure for the manufacturer is 6.97. (Enter your response rounded to two
decimal places.)
c) What is the bullwhip measure for the supplier?
The bullwhip measure for the supplier is 18.73. (Enter your response rounded to two
decimal places.)
d) what conclusions can you draw regarding the impact that economies
scale may have on the bullwhip effect?
a. larger, less frequent orders imply a smaller variance of orders
b. the effect of increasing variance of orders with the less frequent order
could be reduced via channel coordination by determining lot sizes
c. the effect of decreasing variance of orders with the less frequent orde
could be reduced via channel coordination by determining lot sizes
Transcribed Image Text: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 410 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. Click the icon to view the orders placed by each firm in the supply chain. i Click the icon to view the ways of calculating the variance. a) What is the bullwhip measure for the retailer? The bullwhip measure for the retailer is 1.00 (Enter your response rounded to two decimal places.) b) What is the bullwhip measure for the manufacturer? The bullwhip measure for the manufacturer is 6.97. (Enter your response rounded to two decimal places.) c) What is the bullwhip measure for the supplier? The bullwhip measure for the supplier is 18.73. (Enter your response rounded to two decimal places.) d) what conclusions can you draw regarding the impact that economies scale may have on the bullwhip effect? a. larger, less frequent orders imply a smaller variance of orders b. the effect of increasing variance of orders with the less frequent order could be reduced via channel coordination by determining lot sizes c. the effect of decreasing variance of orders with the less frequent orde could be reduced via channel coordination by determining lot sizes
Week
1
2
3
4
5
6
7
8
Retailer
110
110
190
190
310
310
410
410
Manufacturer
220
380
620
820
Supplier
600
1,440
Transcribed Image Text:Week 1 2 3 4 5 6 7 8 Retailer 110 110 190 190 310 310 410 410 Manufacturer 220 380 620 820 Supplier 600 1,440
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