At four regions of TESCO: - The weekly demand = 2,500 units; standard deviation = 500 units; assuming that demand is independent across weeks. - Lead time=2 weeks; the review period T=2 weeks; Service Level SL=97.5%; - Given that demand for each region is independent. 

1) Compare the safety stocks of decentralized and centralized inventory and pooling strategy under continuous review policy and periodic review policy. 

2) Re-compare the safety stocks of decentralized and centralized inventory and pooling strategy if the regions are updated to be 36 regions.

Answer rating: 100% (QA)

1 Here the policies used are continuous review policy periodic review policy Remember for the same lead time level of product availability periodic re... View the full answer