During the early days of the pandemic, there was a surge of toilet paper demand as consumers started panic buying in cas

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During the early days of the pandemic, there was a surge of toilet paper demand as consumers started panic buying in case of future disruption of supplies. This scenario led to a real life example of the Bullwhip Effect. Consider a 4 stage Toilet Paper supply chain: Retailer, Wholesaler, Distributor and Manufacturer. Each stage must decide how many rolls of toilet paper to order from its upstream partner, given the order quantity that it received in the current time period. Demand Retailer Wholesaler Distributor Manufacturer Supply
Part 1 0.0/1.25 points (graded) Consider the operations for the previous year. For the retailer, the variance of customer demand at a weekly level was 3964 rolls. The variance of orders at a weekly level for the retailer, wholesaler, distributor, and manufacturer, was 5757, 9928, 11306, and 15270 rolls respectively. Note that the variance of orders equals the variance of demand for that firm's supplier. The customer for each level in the supply chain would be the level downstream to it. For example, the customer for manufacturer would be the distributor. Determine the size of the bullwhip effect for the retailer. Round your answer to two decimal places. Determine the size of the bullwhip effect for the wholesaler. Round your answer to two decimal places. Determine the size of the bullwhip effect for the distributor. Round your answer to two decimal places. Determine the size of the bullwhip effect for the manufacturer. Round your answer to two decimal places. Which firm appears to be contributing the most to the bullwhip effect in this supply chain? Choose the best answer Retailer Wholesaler Distributor Manufacturer
Part 2 0.0/1.25 points (graded) The following table presents the orders placed by each firm in the supply chain for a period of 16 weeks. The retailer orders from the wholesaler, the wholesaler from the distributor, the distributor from the manufacturer, and the manufacturer is ordering the raw materials required to produce the rolls of toilet paper. (Remember to add zeros where there is no demand before computing the variance). Weeks Retailer Distributor Manufacturer Wholesaler 3607 1 2071 8749 25246 2 1536 3 2571 5142 4 2571 5 3607 7213 16497 6 3607 7 4642 9284 8 4642 9 2571 5142 11320 23675 10 2571 11 3607 6178 12 2571 13 4642 8249 12355 14 3607 15 1536 4107 16 2571 Determine the size of the bullwhip effect for the Wholesaler? Round your answer to two decimal places. Determine the size of the bullwhip effect for the Distributor? Round your answer to two decimal places. Determine the size of the bullwhip effect for the Manufacturer? Round your answer to two decimal places.
Part 3 0.0/1.25 points (graded) Order Batching is one of the causes for the Bullwhip effect. You suggest to the Wholesaler to follow a new ordering mechanism to be more responsive to demand wherein the Wholesaler spreads his order across all the weeks (orders every week) instead of following the earlier ordering mechanism of once in 2 weeks. There is no change in ordering behavior of Retailer, Distributor and Manufacturer. (Use the base data from the table in Part 2 and change the ordering policy as mentioned) Has the bullwhip for the Distributor increased, decreased or remained the same compared to Part 2? Choose the best answer. Decreased Increased Does not change Has the bullwhip for the Wholesaler increased, decreased or remained the same compared to Part 2? Choose the best answer. Decreased Increased Does not change Has the bullwhip for the Manufacturer increased, decreased or remained the same compared to Part 2? Choose the best answer. Decreased Increased Does not change Determine the size of the bullwhip effect for the Distributor if the new ordering mechanism of weekly ordering is followed by the Wholesaler? Round your answer to two decimal places.
Why does Order Batching happen sometimes, in spite of increasing the Bullwhip effect. Check all that apply. Volume Discounts are possible for larger lot sizes Total Ordering Setup costs will increase with less batching Lot for Lot buying policy is always better than Order batching Minimum Order Quantities constraint by upstream Suppliers Transportation Options don't affect Order batching None of the above
Part 4 0.0/1.25 points (graded) Consider the wholesaler is back to his earlier ordering pattern of once in 2 weeks. Now the Distributor follows the same ordering policy as the wholesaler of once in 2 weeks instead of once in 4 weeks. Retailer, Wholesaler and Manufacturer order exactly the same as in Part 2. We also calculate the ratio of Bullwhips of two different levels in the Supply chain to understand the relative contribution of Bullwhip in one level versus another across the Supply Chain. Calculate the ratio of the Wholesaler bullwhip Effect over the Distributor bullwhip Effect (Bullwhip [Wholesaler] / Bullwhip [Distributor]) Round your answer to two decimal places. Calculate the ratio of the Wholesaler bullwhip Effect over the Manufacturer bullwhip Effect (Bullwhip [Wholesaler] / Bullwhip [Manufacturer]) Round your answer to two decimal places.