Customer Retailer Wholesaler

Week demand Delivery Backorder Inventory Order Delivery Backorder Inventory Order
1 5 0 0 10 5 0 0 10 10
2 7 5 0 8 5 10 0 15 5
3 20 5 7 0 35 5 15 0 30
4 5 35 0 23 0 30 0 15 0
5 40 0 17 0 30 0 15 0 30
6 20 30 7 0 20 30 5 0 25
7 10 20 0 3 15 25 0 5 10
8 50 15 32 0 50 10 35 0 60
9 30 50 12 0 20 60 0 5 20
10 10 20 2 0 15 20 0 10 25
11 20 15 7 0 30 25 0 5 25
12 50 30 27 0 50 25 20 0 40
13 40 50 17 0 30 40 10 0 25
14 75 30 62 0 80 25 65 0 100
15 90 80 72 0 100 100 65 0 150
16 100 100 72 0 90 150 5 0 100
17 50 90 32 0 55 100 0 40 60
18 5 55 0 18 10 60 0 90 0
19 10 10 0 18 0 0 0 90 0
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
 Distributor Factory
Delivery Backorder Inventory Order Delivery Backorder Inventory Order
0 0 5 5 0 0 10 5
5 0 5 5 5 0 10 5
5 20 0 40 5 25 0 50
40 0 20 0 50 0 25 0
0 10 0 30 0 5 0 15
30 5 0 35 15 25 0 50
35 0 20 5 50 0 20 0
5 35 0 50 0 30 0 50
50 5 0 45 50 25 0 60
45 0 15 20 60 0 15 30
20 0 10 25 30 0 20 20
25 5 0 40 20 0 0 25
40 0 10 30 25 5 0 30
30 60 0 90 30 65 0 120
90 120 0 170 120 115 0 150
170 50 0 100 150 65 0 100
100 10 0 60 100 25 0 50
60 0 50 0 50 0 25 0
0 0 50 0 0 0 25 0
 Orders
Week Customer Retailer Wholesaler Distributor Factory
1 5 5 10 5 5
2 7 5 5 5 5
3 20 35 30 40 50
4 5 0 0 0 0 180
5 40 30 30 30 15
160
6 20 20 25 35 50
7 10 15 10 5 0 140
8 50 50 60 50 50

Orders
9 30 20 20 45 60 120
10 10 15 25 20 30
11 20 30 25 25 20 100
12 50 50 40 40 25
13 40 30 25 30 30 80
14 75 80 100 90 120
15 90 100 150 170 150 60
16 100 90 100 100 100
17 50 55 60 60 50 40
18 5 10 0 0 0
20
19 10 0 0 0 0
20 0 0 0 0 0 0
21 0 0 0 0 0 1 3 5 7 9 11 13 15 1
22 0 0 0 0 0
23 0 0 0 0 0
24 0 0 0 0 0
25 0 0 0 0 0
26 0 0 0 0 0
27 0 0 0 0 0
28 0 0 0 0 0
29 0 0 0 0 0
30 0 0 0 0 0 180
31 0 0 0 0 0
160
32 0 0 0 0 0
33 0 0 0 0 0 140
34 0 0 0 0 0
Orders

35 0 0 0 0 0 120
36 0 0 0 0 0
37 0 0 0 0 0 100
38 0 0 0 0 0
39 0 0 0 0 0 80
40 0 0 0 0 0
Average 16 17.875 18.75 19 60
Amplitude 100 150 170 150
# Small 4 2 12 15 40

20

0
1 3 5 7 9 11 13 15
 Bullwhip Effect

180

160

140
Orders

120
Customer
100 Retailer

80 Wholesaler
Distributor
60 Factory

40

20

0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39
Week

Bullwhip Effect

180

160

140
Orders

120
Customer
100
Retailer
80 Wholesaler
Distributor
60 Factory

40

20

0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39
Week
 Total Inventory / Backorder
Week Retailer Wholesaler Distributor Factory
1 10 10 5 10
2 8 15 5 10 Out of stock = Serious la
3 -7 -15 -20 -25
4 23 15 20 25 150
5 -17 -15 -10 -5
6 -7 -5 -5 -25
7 3 5 20 20 100
8 -32 -35 -35 -30

Inventory
9 -12 5 -5 -25
10 -2 10 15 15 50
11 -7 5 10 20
12 -27 -20 -5 0
13 -17 -10 10 -5 0
14 -62 -65 -60 -65 1 3 5 7 9 11 13 15 17 19 21 23
15 -72 -65 -120 -115
16 -72 -5 -50 -65 -50
17 -32 40 -10 -25
18 18 90 50 25
19 18 90 50 25 -100
20 0 0 0 0
21 0 0 0 0
22 0 0 0 0 -150
23 0 0 0 0
Week
24 0 0 0 0
25 0 0 0 0
26 0 0 0 0
27 0 0 0 0
28 0 0 0 0
29 0 0 0 0
30 0 0 0 0
31 0 0 0 0
32 0 0 0 0
33 0 0 0 0
34 0 0 0 0
35 0 0 0 0
36 0 0 0 0
37 0 0 0 0
38 0 0 0 0
39 0 0 0 0
40 0 0 0 0

Amplitude 95 155 170 140

 Out of stock = Serious lack of service level!

Retailer
Wholesaler
5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 Distributor
Factory

Week
 Total Cost
Week Retailer Wholesaler Distributor Factory Supply Chain
1 5 5 2.5 5 17.5
2 9 12.5 5 10 36.5 T
3 16 27.5 25 35 103.5
4 27.5 35 35 47.5 145
5 44.5 50 45 52.5 192 500
6 51.5 55 50 77.5 234
450
7 53 57.5 60 87.5 258
8 85 92.5 95 117.5 390 400
9 97 95 100 142.5 434.5
10 99 100 107.5 150 456.5 350

Cost
11 106 102.5 112.5 160 481
300
12 133 122.5 117.5 160 533
13 150 132.5 122.5 165 570 250
14 212 197.5 182.5 230 822
15 284 262.5 302.5 345 1194 200
16 356 267.5 352.5 410 1386
150
17 388 287.5 362.5 435 1473
18 397 332.5 387.5 447.5 1564.5 100
19 406 377.5 412.5 460 1656
20 406 377.5 412.5 460 1656 50
21 406 377.5 412.5 460 1656
0
22 406 377.5 412.5 460 1656
1 3 5 7 9 11 13 15 17 1
23 406 377.5 412.5 460 1656
24 406 377.5 412.5 460 1656
25 406 377.5 412.5 460 1656
26 406 377.5 412.5 460 1656
27 406 377.5 412.5 460 1656
28 406 377.5 412.5 460 1656
29 406 377.5 412.5 460 1656
30 406 377.5 412.5 460 1656
31 406 377.5 412.5 460 1656
32 406 377.5 412.5 460 1656
33 406 377.5 412.5 460 1656
34 406 377.5 412.5 460 1656
35 406 377.5 412.5 460 1656
36 406 377.5 412.5 460 1656
37 406 377.5 412.5 460 1656
38 406 377.5 412.5 460 1656
39 406 377.5 412.5 460 1656
40 406 377.5 412.5 460 1656
 Total Cost

500

450

400

350

300
Retailer
250 Wholesaler
Distributor
200
Factory
150

100

50

0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39
Week