Question

Consider a three-firm supply chain consisting of a retailer, manuracturer, and supplier. The retailer's demand over an 8-week period was 110 units each of the first 2 weeks, 210 units each of the second 2 weeks, 290 units each of the third 2 weeks, and 400 units each of the fourth 2 weeks. The following table presents the orders placed by each firm in the supply chain. Notice, as is often the case in supply chains due to economies of scale, that total units are the same in each case, but firms further up the supply chain (away from the retailer) place larger, less frequent, orders. Click the icon to view the orders placed by each firm in the supply chain. Click the icon to view the ways of calculating the variance. a) What is the bullwhip measure for the retailer? The bullwhip measure for the retailer is (Enter your response rounded to two decimal places.) b) What is the bullwhip measure for the manufacturer? The bullwhip measure for the manufacturer is (Enter your response rounded to two decimal places.)

Answer 1

The question regards calculating the bullwhip effect in a supply chain; however, essential data needed for the calculation is missing, making it impossible to provide the bullwhip measures for the retailer and the manufacturer.

Step-by-step explanation:

The question pertains to a scenario involving a supply chain and the calculation of the bullwhip effect, which is a phenomenon where orders to suppliers tend to have larger variance than sales to the customer, causing distortion in the supply chain. The bullwhip effect measure is not explicitly provided in the question, but it typically involves statistical metrics such as variance or standard deviation of orders relative to the variance of demand. Unfortunately, the essential data required to calculate the bullwhip effect measure, such as the orders placed by each firm in the supply chain, has not been provided. Without this information, it is impossible to calculate the requested bullwhip measure for the retailer or the manufacturer.

Business students often study supply chains and their efficiency, as well as the distortions that can arise such as the bullwhip effect. Understanding these concepts is vital for optimizing supply chain management and ensuring that goods are produced and delivered in the most efficient manner possible.

Answer 2

The bullwhip measure for a firm in a supply chain is calculated by dividing the variance of the firm's orders by the variance of the firm's sales. The exact measure for the retailer and the manufacturer cannot be provided without specific orders data.

Step-by-step explanation:

The question relates to the concept of the bullwhip effect in supply chain management, which describes how orders to suppliers tend to increase in variability as one moves upstream in the supply chain from the retailer to the manufacturer to the supplier.

Without the specific numerical orders data for the retailer and the manufacturer, it is not possible to calculate the bullwhip measure precisely. The bullwhip measure for a firm in a supply chain can be calculated as the variance of orders placed by the firm divided by the variance of sales by that firm to its customer, typically rounded to two decimal places. Variance in this context measures the fluctuation in order quantity over time.

As more details are needed such as orders placed by the retailer and the manufacturer for each period, it is recommended for the student to submit this information for accurate calculations.