The variance of orders 1,805,000 a) Bullship measure =

The variance of demands 793,000 b) Winston’s Winery is genera

Bullship measure = 2.276166
Winston’s Winery is generating an amplifying effect in its supply chain because 2.276166456 >1
 Difference between mean order
week retailer manufacturer supplier retailer
1 100 200 600 150
2 100 0 0 150
3 200 400 0 50
4 200 0 0 50
5 300 600 1400 -50
6 300 0 0 -50
7 400 800 0 -150
8 400 0 0 -150
MEAN ORDERS 250 250 250
VARIANCE OF ORDERS 14,286 100,000 260,000

a)
Bullship measure = 1.0

b) Bullship measure = 7.0

c) Bullship measure = 2.6

d)  Economies of scale appear to contribute to the bullwhip effect. Larger, less frequent
orders imply a larger variance of orders as we move up the supply chain toward
suppliers. These effects could be reduced via channel coordination by determining lo
sizes as though the full supply chain were one company. It can also help to invest in
setup cost reduction, which would reduce the impact of economies of scale and move
the firms more toward just-in-time production.
ce between mean orders and orders
manufacturers supplier
50 -350 `
250 250
-150 250
250 250
-350 -1150
250 250
-550 250
250 250

ect. Larger, less frequent

supply chain toward
dination by determining lot
can also help to invest in
nomies of scale and move
 Weighted Totals
Joklekar Siemsen Joklekar Siemsen
Engineering Competence 20 5 4 100 80
Process Capability 20 4 4 80 80
Cost 10 1 5 10 50
Quality 20 4 4 80 80
Performance to Schedule 20 4 3 80 60
After-Sales Service 10 3 4 30 40
Total 100 380 390

Answer: Siemsen is the preferred vendor.

 Weighted Total S
Joklekar Siemsen Fricker V-Tech Joklekar
Engineering Competence 20 5 4 5 100
Process Capability 20 4 4 5 80
Cost 10 1 5 1 10
Quality 20 4 4 5 80
Performance to Schedule 20 4 3 4 80
After-Sales Service 10 3 4 1 30
Total 100 380

Answer: The vendor with the highest score is Fricker V-Tech.

Weighted Total Score
Siemsen Fricker V-Tech
80 100
80 100
50 10
80 100
60 80
40 10
390 400