Question

Consider a​ three-firm supply chain consisting of a​ retailer, manufacturer, and supplier. The​ retailer's demand over an​ 8-week period was 90 units each of the first 2​ weeks, 210 units each of the second 2​ weeks, 280 units each of the third 2​ weeks, and 410 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.

What is the bullwhip measure for:

1. retailer

2. manufacturer

3. supplier

Answer 1