Question: Consider comparing a decentralized versus a centralized inventory system as it ultimately relates to the amount of salety stock ( extra inventory over and above
Consider comparing a decentralized versus a centralized inventory system as it ultimately relates to the amount of salety stock extra inventory over and above mean demand held in the system.
Focus on one specific part: SurgeArrester. The lead time for this part from manufacturing to warehouses is one week. Suppose that the CEO of ElectroWorks requires a customer service level. This means that the probability of satisfying customer demand during the lead time is Assume that lead time demands for the Milwaukee warehouse, Chicago warehouse, and centralized warehouse are Normally distributed with the following means and standard deviations :
Milwaukee warehouse units units
Chicago warehouse units units
Correlation between and
centralized warehouse units units
Use decimal notation. Use Table A Round your answer to the nearest integer.
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