# Question

Consider a three- firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer’s demand over an 8- week period was 100 units each of the first 2 weeks, 200 units each of the second 2 weeks, 300 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.

Recall that the sample variance of a data set can be found by using the VAR. S function in Excel or by plugging each x value of the data set into the formula: Variance = Ʃ(x - x¯) / (n - 1)where x is the mean of the data set and n is the number of values in the set.

a) What is the bullwhip measure for the retailer?

b) What is the bullwhip measure for the manufacturer?

c) What is the bullwhip measure for the supplier?

d) What conclusions can you draw regarding the impact that economies of scale may have on the bullwhipeffect?

Recall that the sample variance of a data set can be found by using the VAR. S function in Excel or by plugging each x value of the data set into the formula: Variance = Ʃ(x - x¯) / (n - 1)where x is the mean of the data set and n is the number of values in the set.

a) What is the bullwhip measure for the retailer?

b) What is the bullwhip measure for the manufacturer?

c) What is the bullwhip measure for the supplier?

d) What conclusions can you draw regarding the impact that economies of scale may have on the bullwhipeffect?

## Answer to relevant Questions

Using the data in Problem S11.10, assume that both Donna, Inc. and Kay Corp. are able to move all their “ poor” ratings to “ fair.” How would you then rank the two firms?Boreki Enterprises has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classifications.Develop an ABC classification system for the 10 items.How can Boreki ...How does revenue management impact an aggregate plan?Ram Roy’s firm has developed the following supply, demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum cost using the transportation method. What is the cost? Assume that the initial ...Your boss at Scott Sampson Products, Inc., has just provided you with the schedule and lead times for the bracket in Problem 14.8. The unit is to be prepared in week 10. The lead times for the components are bracket ( 1 ...Post your question

0