Question 19 (5 points)

Consider the supply chain illustrated here:

Last year, the retailers' weekly variance of demand was 100 units. The variance of orders was 250, 300, 400 and 600 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)

Calculate the bullwhip measures for the retailer, wholesaler, distributer and the manufacturer. (2 marks)

What is the bullwhip effect for the entire supply chain? (1 mark)

Provide actionable guidelines (with anticipated bullwhip measures at each point) on how to reduce bullwhip measure to 2 in the supply chain. (2 marks)