Principles Of Operations Management
Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
bartleby

Concept explainers

bartleby

Videos

Question
Book Icon
Chapter 11.S, Problem 6P

a)

Summary Introduction

To calculate: The bullwhip measure of the retailer.

Introduction: Supply chain management is one of the important elements of a business which impacts business product development. With expanding businesses in global conditions, supply chain activities can impact the cost effectiveness of these businesses.

a)

Expert Solution
Check Mark

Answer to Problem 6P

The bullwhip measure of the retailer is 2.5.

Explanation of Solution

Given information:

Principles Of Operations Management, Chapter 11.S, Problem 6P , additional homework tip  1

Weeklyvarianceofdemand=200unitsVarianceoforderforretailer=500unitsVarianceoforderforwholesaler=600unitsVarianceoforderfordistributor=750unitsVarianceoforderformanufacturer=1,350units

Formula:

Bullwhip=VarianceofordersVarianceofdemand=σorder2σdemand2

Calculation of bullwhip measure for retailer:

Bullwhip=VarianceofordersVarianceofdemand=500200=2.5 Principles Of Operations Management, Chapter 11.S, Problem 6P , additional homework tip  2 (1)

The bullwhip measure of the retailer is calculated by dividing the variance of order with the variance of demand. 500 is divided by 200, which gives 2.5 as the bullwhip measure for the retailer.

Hence, the bullwhip measure for the retailer is 2.5

b)

Summary Introduction

To calculate: The bullwhip measure of the wholesaler.

b)

Expert Solution
Check Mark

Answer to Problem 6P

The bullwhip measure of the wholesaler is 1.2.

Explanation of Solution

Given information:

Principles Of Operations Management, Chapter 11.S, Problem 6P , additional homework tip  3

Weeklyvarianceofdemand=200unitsVarianceoforderforretailer=500unitsVarianceoforderforwholesaler=600unitsVarianceoforderfordistributor=750unitsVarianceoforderformanufacturer=1,350units

Formula:

Bullwhip=VarianceofordersVarianceofdemand=σorder2σdemand2

Calculation of the bullwhip measure for the wholesaler:

Bullwhip=VarianceofordersVarianceofdemand=600500=1.2 (2)

The bullwhip measure for the wholesaler is calculated by dividing the variance of order with the variance of demand. 600 is divided by 500, which gives 1.2 as the bullwhip measure for the wholesaler.

Hence, the bullwhip measure for the wholesaler is 1.2.

c)

Summary Introduction

To calculate: The bullwhip measure of the distributor.

c)

Expert Solution
Check Mark

Answer to Problem 6P

The bullwhip measure of the distributor is 1.25.

Explanation of Solution

Given information:

Principles Of Operations Management, Chapter 11.S, Problem 6P , additional homework tip  4

Weeklyvarianceofdemand=200unitsVarianceoforderforretailer=500unitsVarianceoforderforwholesaler=600unitsVarianceoforderfordistributor=750unitsVarianceoforderformanufacturer=1,350units

Formula:

Bullwhip=VarianceofordersVarianceofdemand=σorder2σdemand2

Calculation of the bullwhip measure for the distributor:

Bullwhip=VarianceofordersVarianceofdemand=750600=1.25 (3)

The bullwhip measure for the distributor is calculated by dividing the variance of order with the variance of demand. 750 is divided by 600, which gives 1.25 as the bullwhip measure for the distributor.

Hence, the bullwhip measure for the distributor is 1.25.

d)

Summary Introduction

To calculate: The bullwhip measure of the manufacturer.

d)

Expert Solution
Check Mark

Answer to Problem 6P

The bullwhip measure of the manufacturer is 1.8.

Explanation of Solution

Given information:

Principles Of Operations Management, Chapter 11.S, Problem 6P , additional homework tip  5

Weeklyvarianceofdemand=200unitsVarianceoforderforretailer=500unitsVarianceoforderforwholesaler=600unitsVarianceoforderfordistributor=750unitsVarianceoforderformanufacturer=1,350units

Formula:

Bullwhip=VarianceofordersVarianceofdemand=σorder2σdemand2

Calculation of the bullwhip measure for the manufacturer:

Bullwhip=VarianceofordersVarianceofdemand=1350750=1.8 (4)

The bullwhip measure for the manufacturer is calculated by dividing the variance of order with the variance of demand. 1350 is divided by 750, which gives 1.8 as the bullwhip measure for the manufacturer.

Hence, the bullwhip measure for the manufacturer is 1.8

e)

Summary Introduction

To determine: Which firm exhibits the highest bullwhip effect in the supply chain.

e)

Expert Solution
Check Mark

Answer to Problem 6P

The retailer exhibits the highest bullwhip effect in the supply chain.

Explanation of Solution

Given information:

Principles Of Operations Management, Chapter 11.S, Problem 6P , additional homework tip  6

Weeklyvarianceofdemand=200unitsVarianceoforderforretailer=500unitsVarianceoforderforwholesaler=600unitsVarianceoforderfordistributor=750unitsVarianceoforderformanufacturer=1,350units

On comparing equations (1), (2), (3) & (4), it can be inferred that retailers have the highest bullwhip effect.

Hence, the retailer exhibits the highest bullwhip effect in the supply chain.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Consider the supply chain illustrated below: Manufacturer Distributor Wholesaler Retailer Last year the retailer's weekly variance of demand was 190 units. The variance of orders was 490, 610, 730, and 1,320 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.) a) The bullwhip measure for the retailer is decimal places.) b) The bullwhip measure for the wholesaler is two decimal places.) (Enter your response rounded to two (Enter your response rounded to c) The bullwhip measure for the distributor is ☐. (Enter your response rounded to two decimal places.) d) The bullwhip measure for the manufacturer is two decimal places.) e) In this supply chain, the bullwhip effect. (Enter your response rounded to appears to be contributing the most to the
The following lots of a particular commodity were available for sale during the year Beginning inventory 7 units at $49.00 First purchase 18 units at $54.00 Second purchase 25 units at $59.00 Third purchase 14 units at $59.00 The firm uses the periodic system, and there are 23 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the FIFO method? Select the correct answer. $1,127.00 $1,357.00 $3,616.00 $3,593.00
1.Upstream supply chain members are A. retailers B. manufacturers C. end-use customers D. suppliers   2.The integrated group of business processes that form a supply chain are A. marketing, manufacturing and finance B. procurement, production and distribution C. manufacturing and service D. demand, value, and quality   3.The bullwhip effect occurs when A. slight to moderate demand variability becomes magnified as demand information is transmitted back upstream. B. slight to moderate demand variability becomes magnified as supply information is transmitted back upstream. C. slight to moderate demand variability becomes magnified as demand information is transmitted back downstream. D. slight to moderate demand variability becomes magnified as supply information is transmitted back downstream.   4.The key element in achieving supply chain integration is A. quality management B. ISO certification C. information technology D. EDI   5.A disadvantage of RFID technology that has hindered its…

Chapter 11 Solutions

Principles Of Operations Management

Knowledge Booster
Background pattern image
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
  • Text book image
    Purchasing and Supply Chain Management
    Operations Management
    ISBN:9781285869681
    Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
    Publisher:Cengage Learning
    Text book image
    MARKETING 2018
    Marketing
    ISBN:9780357033753
    Author:Pride
    Publisher:CENGAGE L
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY