Practice questions $($Bullwhip Effect$)$

April $2024$

$($a$)$ Using the same logic and the same rules $($i$.$e$.$ all operations keep one period's inventory$),$ what would the effect on the chain be if demand fluctuated period by period between $100$ and $95?$ That is$,$ period $1$ has a demand of $100,$ period $2$ has a demand of $95,$ period $3$ a demand of $100,$ period $4$ a demand of $95,$ and so on$?$

$($b$)$ What happens if all operations in the supply chain decided to keep only half of the period's demand as inventory?