Over the past six months, Wholesale Foods of Fresno has experienced a standard deviation of demand of 600 units. Standard deviation of its orders during that period was 800 units.
(a) What is the bullwhip measure for Wholesale Foods of Fresno?
(b) If Wholesale Foods of Fresno had made a perfect forecast of demand over the past 6 months and had decided to order 1/6 of that demand each month, what would its bullwhip measure have been?

(a) Variance of orders / Variance of demand = 800² / 600² = 640,000 / 360,000 = 1.78 (Note that while using the standard deviations to calculate the bullwhip measure would still indicate whether or not amplification exists, the value of that calculation would be different from that prescribed by equation (S11-2).)
(b) If order sizes are always the same, then the variance of orders equals 0. From Equation (S11-2), the bullwhip measure = 0 / 360,000 = 0 (complete dampening).