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7. (10pts) A supply chain consists four members, a manufacturer, a wholesaler, a distributor and a retailer, from upstream to downstream. In the supply chain,

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7. (10pts) A supply chain consists four members, a manufacturer, a wholesaler, a distributor and a retailer, from upstream to downstream. In the supply chain, the manufacturer sells to the distributor who sells to the wholesaler who sells to the retailer. Last year, the retailer's weekly variance of demand was 4,000 units. The weekly variance of orders was 5,000;3,000;12,000; and 17,000 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 measure for the retailer, wholesaler, distributor and manufacturer. Which firm appears to be contributing the most to the bullwhip effect in this supply chain? Which firm appears to be contributing the most to a dampening scenario in this supply chain

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