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Consider the supply chain illustrated below: Manufacturer Distributor Wholesaler Retailer The diagram contains 4 rectangles. From left to right the rectangles are labeled Manufacturer, Distributor,
Consider the supply chain illustrated below:
Manufacturer
Distributor
Wholesaler
Retailer
The diagram contains rectangles. From left to right the rectangles are labeled "Manufacturer," "Distributor," "Wholesaler," and "Retailer." There are arrows pointing from left to right between each box as follows: Manufacturer to Distributor, Distributor to Wholesaler, and Wholesaler to Retailer.
Last year the retailer's weekly variance of demand was units. The variance of orders was and 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. The Bullwhip measure for the retailer is
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