The Tesla Model 3 is an electric four-door fastback sedan developed by Tesla. Its the world's best-selling
Question:
The goal is to provide a 95 percent service level using a continuous review policy. Renewal times for both vendors and regional warehouses are four weeks. Customization and shipping from a regional warehouse to the vendor can be done in one day and ignored. Assume demand is independent between all vendors.
a. How much safety inventory of a Long Range version is required at a large or small vendor?
b. What is the safety inventory required if inventory for the Long Range version (for both large and small vendors) is centralized at the regional warehouse by Tesla?
C. What is the safety inventory required if inventory for the Long Range version at small vendors is centralized at the regional warehouse but that for large vendors is decentralized?
d. Given the additional customization and transportation cost, which structure do you recommend for the Long Range version? Hint: Find the TC for (a), (b), and (c).
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille