Question: how did we get ( 961.2 ) orders FIRM Lee Metals orders sheet metal and transforms it into 50 formed tabletops that are sold to
how did we get ( 961.2 ) orders
FIRM Lee Metals orders sheet metal and transforms it into 50 formed tabletops that are sold to furniture manufacturers. The table below shows the weekly variance of demand and orders for each major company in this supply chain for tables. Each firm has one supplier and one customer, so the order variance for one firm will equal the demand variance for its supplier. Analyze the relative contributions to the bullwhip effect in this supply chain. VARIANCE OF DEMAND VARIANCE OF ORDERS BULLWHIP MEASURE Furniture Mart, Inc 110 110/100 - 1.10 Furniture Distributors, Inc 180 180/110 - 1.64 Furniture Makers of America 300 300/180 - 1.67 Chieh Lee Metals, Inc 750 750/300 - 2.50 Metal Suppliers Ltd 2000 2000/750 - 2.67 There is a variance amplification or bullwhip effect as orders fluctuate more than the size of demand Question: Suppose Lee Metals is able to reduce the bullwhip measure from 2.50 to 1.20. If the measure for all other firms remained the same, what would be the new reduced variance of orders from Metal Suppliers? [Answer: 961.2 orders] 100 110 180 300 750
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
