Question: Consider the operations for the previous year. For the retailer, the variance of customer demand at a weekly level was 5 6 4 2 rolls.
Consider the operations for the previous year. For the retailer, the variance of customer demand at a weekly level was rolls. The variance of orders at a weekly level for the retailer, wholesaler, distributor, and manufacturer, was and rolls respectively.
Note that the variance of orders equals the variance of demand for that firm's supplier. The customer for each level in the supply chain would be the level downstream to it For example, the customer for manufacturer would be the distributor.
Determine the size of the bullwhip effect for the retailer.
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