CC Rainger is a business to business distributor of MRO (maintain, repair and operate) products. They have
Question:
CC Rainger is a business to business distributor of MRO (maintain, repair and operate) products. They have more than 300 retail stores that they serve from a central warehouse. The company uses a 98% service level calculated on the proportion that can be satisfied directly from stock (demand fill rate). The cost for placing an order is $100 and the annual holding cost is 20%. They work 365 days/year.
| Item property | Data value | ||
| Lead time from supplier | 14 days | ||
| Lead time to Retailer | 3 days | ||
| Internal price | $25 | ||
| Daily demand | 75 units | ||
| σ, Standard deviation during lead time | 103 units | ||
| |
Expert Answer:
Marketing The Core
ISBN: 978-0078028922
5th edition
Authors: Roger A. Kerin, Steven W. Hartley, William Rudelius
