Consider a Supply Chain Where a Retailer Orders from a Wholesaler

Consider a supply chain where a retailer orders from a wholesaler who orders from a manufacturer who orders from a supplier. The retailer's monthly standard deviation of demand is 20 units. The standard deviation of orders was 30, 60, 70, and 40 units for the retailer, wholesaler, manufacturer, and supplier, respectively. Which of the following is TRUE?

A) The supplier's bullwhip measure is 0.5714.
B) The wholesaler's bullwhip measure is 4.
C) The manufacturer is providing a dampening effect.
D) The retailer contributes most to the bullwhip effect in the supply chain.
E) The wholesaler's bullwhip measure is 2.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free