) 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.) ​c) What is the bullwhip measure for the​ supplier? The bullwhip measure for the supplier is ______.​(Enter your response rounded to two decimal​ places.)

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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Consider a​ three-firm supply chain consisting of a​ retailer, manufacturer, and supplier. The​ retailer's demand over an​ 8-week period was 110 units each of the first 2​ weeks, 190 units each of the second 2​ weeks, 310 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.

WEEK RETAILER MANUFACTURER SUPPLIER
1 110 220 600
2 110    
3 190 380  
4 190    
5 310 620

1420

6 310    
7 400 800  
8 400    

​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.)

​c) What is the bullwhip measure for the​ supplier?

The bullwhip measure for the supplier is ______.​(Enter your response rounded to two decimal​ places.)

​d) What conclusions can you draw regarding the impact that economies of scale may have on the bullwhip​ effect?

Select all of the correct statements below.

A. Larger, less frequent orders imply a larger variance of orders.

B. The effect of increasing variance of orders with the less frequent orders could be reduced via channel coordination by determining lot sizes.

C. The effect of decreasing variance of orders with the less frequent orders could be reduced via channel coordination by determining lot sizes.

D.  ​Larger, less frequent orders imply a smaller variance of orders.

 

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