Question: A regional DC uses a double order point system. Its replenishment orders come from the Central Supply. The DC has the following information: Weekly Demand

A regional DC uses a double order point system. Its replenishment orders come from the Central Supply. The DC has the following information:

Weekly Demand (units) - 175

Safety Stock (units) - 40

Manufacturing Lead Time (weeks) - 2

Replenishment Lead Time (weeks) - 1

a) At what stock level will the DC provide a warning to the Central Supply?

b) At what stock level will the DC actually send the order to the Central Supply?

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