Question: 1(a). Weekly demand for EPSON printers at a WALMART store is normally distributed with a mean of 280 and a standard deviation of 180. The

1(a). Weekly demand for EPSON printers at a WALMART store is normally distributed with a mean of 280 and a standard deviation of 180. The store manager continuously monitors inventory and currently orders 1,100 printers each time the inventory drops to 700 printers. EPSON currently takes two weeks to fill an order. How much safety inventory should WALMART carry? What is the Cycle Service Level (CSL)? What is the expected shortage per replenishment cycle (ESC)? What is the fill rate (fr)?

Avg D per period = 280

Sd of D per period = 180

L=2 weeks

Rr=700

Lot size=1100

SS=700-(208*2)=140 units

DL = 280 *2=260

sdL=(sqrt2)8180=254.55 ~ 255

CSL=F(rr,DL,sdL) = [NormDISTB(700,560,255,1]=0.7085~0.71

ESC=-140[1-NORMDIST((140/255),0,1,1)]=255*NORMDIST[(140/255),0,1,0)

ESC=46.67

fr=1100-46.67/100=95.75%

1(b). After further analysis, WALMART determines that the supply lead time from EPSON is actually normally distributed, with a mean of 2 weeks and a standard deviation of 1.5 weeks. How much safety inventory should WALMART carry if it wants to provide a CSL of 95 percent? What is the expected shortage per replenishment cycle (ESC)? What is the fill rate (fr)? What impact does the variability in the supply lead time have on the safety stock? What if the variability in the supply lead time were reduced to zero? What would the safety stock be for a desired CSL of 95 percent?

QUESTION 1 A HAS BEEN SOLVED ONLY SOLVE 1 B PLEASE AND THANK YOU

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