Reference no: EM132081941

Consider a three-firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer?s demand over an 8-week period was 100 units each of the first 2 weeks, 200 units each of the second 2 weeks, 300 units each of the third 2 weeks, and 400 units each of the fourth 2 weeks. The following table presents the orders placed by each firm in the supply chain. Notice, as is often the case in supply chains due to economies of scale, that total units are the same in each case, but firms further up the supply chain (away from the retailer) place larger, less frequent, orders. WEEK RETAILER MANUFACTURER SUPPLIER 1 100 200 600 2 100 3 200 400 4 200 5 300 600 1400 6 300 7 400 800 8 400