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 Supplier 1 90 180 620 2 90 0 0 3 220 440 0 4 220 0 0 5 280 560 1,360 6 280 0 0 7 400 800 0 8 400 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 manufacturer? The bullwhip measure for the manufacturer is ________. (Enter your response rounded to two decimal places.) c) What is the bullwhip measure for the supplier? The bullwhip measure for the supplier is ______. (Enter your response rounded to two decimal places.) d) What conclusions can you draw regarding the impact that economies of scale may have on the bullwhip effect?
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 Supplier
1 90 180 620
2 90 0 0
3 220 440 0
4 220 0 0
5 280 560 1,360
6 280 0 0
7 400 800 0
8 400 0 0
b) What is the bullwhip measure for the manufacturer?
The bullwhip measure for the manufacturer is ________. (Enter your response rounded to two decimal places.)
c) What is the bullwhip measure for the supplier?
The bullwhip measure for the supplier is ______. (Enter your response rounded to two decimal places.)
d) What conclusions can you draw regarding the impact that economies of scale may have on the bullwhip effect?
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