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The manager of a wooden door distribution center suspects that the demand information it is receiving from its downstream wholesalers is distorted. Compute the extent of the bullwhip effect using the following information, then explain what this computation tells you about the distortion in the demand situation:

Variance in orders placed by the location = 1,000

Variance in demand received by the location = 750

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92593189

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