The Home and Garden (HG) chain of superstores imports decorative planters from Italy. Weekly demand for planters
Question:
a. Determine the optimal order quantity of planters for HG.
b. If the delivery lead time from Italy is 4 weeks and HG wants to provide its customers a cycle service level of 90%, how much safety stock should it carry?
c. Fastship is a new shipping company that promises to reduce the delivery lead time for planters from 4 weeks to 1 week using a faster ship and expedited customs clearance. Using Fastship will add $ 0.2 to the cost of each planter. Should HG go with Fastship? Why or why not? Quantify the impact of the change.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Managing Business Process Flows Principles of Operations Management
ISBN: 978-0136036371
3rd edition
Authors: Ravi Anupindi, Sunil Chopra, Sudhakar Deshmukh, Jan Van Mieg
Question Posted: