Quiz 8 - bullwhip - solution

Quiz 8 - bullwhip - solution - DSC 335, Quiz 8 –...

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Unformatted text preview: DSC 335, Quiz 8 – Bullwhip Effect. Name ____________________________ At the beginning of each week a retailer orders from a wholesaler before demand realizes, and then meets customer demand from the retailer’s inventory. The retailer has a random demand with average 100 units per week. The wholesaler’s re- supply lead- time is 4 weeks. The retailer employs a naïve demand forecast approach: it believes demand in future weeks equal the realized demand in current week. You are at the very beginning of week 1 now. In the past except for the last week, demand has been 100 units per week consistently, and the retailer ordered 100 units every week. However, demand in the last week (week 0) fell to 85 units. Fill the following table, based on the above statement: Week 0 1 (now) 2 3 4 5 Demand / week 85 Forecast of demand 100 85 85 85 85 85 Scheduled delivery 100 100 100 100 100 10 Inventory carried 0 from previous week 15 30 45 60 75 Order quantity 10 100 To meet demand (forecast) of week 5, in the beginning of week 1 the retailer orders Q = ___10____ ...
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