Chieh Lee Metals, Inc. orders sheet metal and transforms it into 50 formed tabletops that are sold to furniture manufacturers. The following table 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

APPROACH c Use Equation (S11-2) to calculate the bullwhip measure for each firm in the chain

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FIRM Furniture Mart, Inc. VARIANCE OF DEMAND VARIANCE OF ORDERS BULLWHIP MEASURE 100 110 110/100 = 1.10 Furniture Distributors, Inc. 110 180 180/110 = 1.64 Furniture Makers of America 180 300 300/180 1.67 Chieh Lee Metals, Inc. 300 750 750/300 = 2.50 Metal Suppliers Ltd. 750 2000 2000/750 = 2.67