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Over the past 12 months, Super Toy Mart has experienced a demand variance of 10,000 units and has produced an order variance of 12,000 units.
a) What is the bullwhip measure for Super Toy Mart?
b) If Super Toy Mart had made a perfect forecast of demand over the past 12 months and had decided to order 1/12 of that annual demand each month, what would its bullwhip measure have been?
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Compute the optimal order quantity of DVD players. Determine the appropriate reoder point (in units). Compute cost savings that the company will realize if it implements the optimal inventory procurement decision.
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