Three-firm supply chain


Suggest a three-firm supply chain consisting of retailer, manufacturer, and supplier. The retailer's demand over 8-week period was 100 units each of first 2 weeks, 200 units each of second 2 weeks, 300 units each of third 2 weeks, and 400 units each of fourth 2 weeks. The following table presents the orders placed by each firm in the supply chain. Notice, as is frequenly the case in supply chains because of economies of scale, that total units are the same in each case, but firms further up supply chain (away from the retailer) place larger, less frequent, orders.

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Business Management: Three-firm supply chain
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