Consider a Supply Chain Where a Retailer Orders from a Wholesaler

question 144

Multiple Choice

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.

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Definitions:

Simple Reflexes

Inborn automatic responses to certain stimuli that are present from birth, such as the sucking reflex in infants.

Mental Representations

Internal cognitive symbols that represent external reality, allowing individuals to process information and make sense of the world.

Primary Circular Reactions

Repetitive actions focused on the body that infants engage in by chance and then continue because they find them pleasurable, marking a stage in sensorimotor development.

Assimilation

The process by which individuals or groups absorb the cultural aspects of another, often the dominant, society.