Suppose that a firm incurs a demand variance of 400 units per week, and the variance of orders that it places equals 750 per week. What is the value of the bullwhip measure for this company?

Bullwhip Measure

A phenomenon in supply chain management where small changes in demand at the retail level cause increasingly larger changes in demand at the wholesale, distributor, and factory levels.

Demand Variance

The difference between the forecasted and actual demand for products or services, affecting inventory and production planning.