- 3 Consider The Supply Chain Illustrated Below 1200 1150 Manufacturer 600 Wholesaler Retailer 500 Last Year The Retail 1 (100.15 KiB) Viewed 11 times
3. Consider the supply chain illustrated below: 1200 1150 Manufacturer 600 Wholesaler Retailer 500 Last year, the retailer's weekly variance of demand was 500 units. The variance of orders was 600, 1200, and 1150 units for the retailer, wholesaler, and manufacturer, respectively. (Note that the variance of orders equals the variance of demand for that firm's supplier.) a) Calculate the bullwhip measure for the retailer. Is the bullwhip effect present here? b) Calculate the bullwhip measure for the wholesaler. Is the bullwhip effect present here? c) Calculate the bullwhip measure for the manufacturer. Is the bullwhip effect present here? d) Which firm appears to be contributing the most to the bullwhip effect in this supply chain? Why?