Asked by Ashley Bull Calf on May 03, 2024
Verified
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
Variance
A measure of the spread or dispersion of a set of data points around the mean value.
- Comprehend the principle and computation of the bullwhip effect within supply chain management.
Verified Answer
PV
Pamela VanguardiaMay 09, 2024
Final Answer :
A
Explanation :
The bullwhip measure is calculated as the variance of orders divided by the variance of demand, which quantifies the amplification of demand variability in the supply chain.
Learning Objectives
- Comprehend the principle and computation of the bullwhip effect within supply chain management.