What Is the Formula for the Bullwhip Measure

question 63

Multiple Choice

What is the formula for the bullwhip measure?

• A)variance of orders / variance of demand
• B)variance of orders - variance of demand
• C)variance of demand / variance of orders
• D)variance of orders2 / variance of demand2
• E)variance of demand - variance of orders

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Definitions:

Gross Profit

The financial metric that represents the difference between sales revenue and the cost of goods sold, before deducting overheads, payroll, taxation, and interest payments.

Profit Center

A branch or division of a company that is treated as a separate entity for the purpose of calculating its profitability.

Profit Center

A division or segment of a company that is directly responsible for generating its own revenue and profit through its activities.

Cost Center

A department or segment of a business that does not directly generate revenue but incurs costs, focusing instead on controlling expenses.