Boots is a UK drugstore company. The annual demand for its own brand shampoo in the...

 

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Boots is a UK drugstore company. The annual demand for its own brand shampoo in the largest Boots store is normally distributed with a mean of 145,600 units, and a standard deviation of 53,248 units. The manager of the store continuously monitors the inventory of this product and orders 11,000 units when the inventory is below 8,500. Historically, the lead time for this product was two weeks. However, due to recent supply chain problems experienced in the UK, the lead time for this product has now increased to three weeks. In spite of this, the manager has not changed the ordering policy. a) Given the replenishment policy is unchanged, how do you expect that the increase in the lead time would have impacted the cycle service level (CSL) rate? Explain without performing any calculations. b) What is the CSL rate with the new lead time of three weeks? [7 marks]. [10 marks] Boots is a UK drugstore company. The annual demand for its own brand shampoo in the largest Boots store is normally distributed with a mean of 145,600 units, and a standard deviation of 53,248 units. The manager of the store continuously monitors the inventory of this product and orders 11,000 units when the inventory is below 8,500. Historically, the lead time for this product was two weeks. However, due to recent supply chain problems experienced in the UK, the lead time for this product has now increased to three weeks. In spite of this, the manager has not changed the ordering policy. a) Given the replenishment policy is unchanged, how do you expect that the increase in the lead time would have impacted the cycle service level (CSL) rate? Explain without performing any calculations. b) What is the CSL rate with the new lead time of three weeks? [7 marks]. [10 marks]