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.
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
8 400
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 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?
Select all of the correct statements below.
*Larger, less frequent orders imply a larger variance of orders.
*The effect of decreasing variance of orders with the less frequent orders could be reduced via channel coordination by determining lot sizes.
*
The effect of increasing variance of orders with the less frequent orders could be reduced via channel coordination by determining lot sizes.
*Larger, less frequent orders imply a smaller variance of orders.
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