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:

Disaster Risk

The potential loss or damage that could occur to a system, society, or community in a specific period due to disasters.

Suppliers

Businesses or individuals that provide goods or services to another entity under terms specified in a contract or agreement.

Great East Japan Earthquake

A magnitude 9.0 undersea earthquake off the Pacific coast of Japan, occurred on March 11, 2011, causing widespread damage and triggering a tsunami.