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Last year, the retailer s weekly variance of demand was 2 0 0 units. The variance of orders was 5 0 0 , 6 0
Last year, the retailers weekly variance of demand was units.
The variance of orders was and units for the
retailers, wholesaler, distributor and manufacturer, respectively.
Note that the variance of orders equals the variance of demand for
that firms supplier
a Calculate the bullwhip measure for the retailer
b Calculate the bullwhip measure for the wholesaler
c Calculate the bullwhip measure for the distributor
d Calculate the bullwhip measure for the manufacturer
e Which firm appears to be contributing the most to the bullwhip
effect in this supply chain?
Bullwhip Effect Example
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