Question: For the total demand, which SKU has the highest variation in demand, and which has the lowest? What are the sales rank and product category

  1. For the total demand, which SKU has the highest variation in demand, and which has the lowest? What are the sales rank and product category for these SKUs?
  2. For the two SKUs identified above:
    1. For a 95% service rate, what is the total safety stock inventory for each SKU under the decentralized warehouse structure?
    2. For a 95% service rate, what is the safety stock inventory for each SKU under a centralized warehouse structure?
    3. Compared to the decentralized structure, what is the percent reduction in safety stock for each SKU with the centralized structure?
  3. For all SKUs:
    1. What is the total inventory cost savings (cycle stock and safety stock) associated with a centralized warehouse compared to the decentralized warehouses? Assume the cost of inventory is 75% of the sales price.
  4. What are the costs and benefits of the centralized approach compared to the decentralized approach?

For the total demand, which SKU has the highest

SKU - - CBL 150 CBL 151 CBL 152 CBL 153 CBL 154 CBL 155 CBL 156 CBL 157 CBL 158 CBL 200 CBL 260 CBL 261 CBL275 CBL 290 CBL 291 CBL 292 CBL 293 CBL 294 CBL 295 CBL 296 CBL 300 CBL 301 CBL 302 CBL 303 CBL 304 CBL 305 CBL 306 CBL 307 CBL 308 CBL 500 CBL 501 CBL600 CBL601 CBL602 Warehouse 10 Warehouse 20 Warehouse 30 Warehouse 40 Warehouse 70 Total Average Average Standard Average Standard Average Standard Average Standard Average Standard Average Standard Selling Price Monthly Sales Deviation Monthly Sales Deviation Monthly Sales Deviation Monthly Sales Deviation Monthly Sales Deviation Monthly Sales Deviation S 6.38 14 21 24 75 17 39 3 4 58 81 $ 8.17 24 21 27 50 66 92 38 17 57 67 212 174 S 12.02 7 15 14 18 5 9 4 4 17 27 47 31 S 5.88 6 8 9 17 42 56 31 65 10 15 98 101 S 6.28 158 185 99 60 107 56 124 100 217 145 705 407 S 4.45 18 45 - 7 23 2 4 14 26 41 70 S 4.44 44 36 12 17 25 37 9 9 41 45 131 60 S 6.66 140 125 41 26 87 34 133 110 176 125 577 243 S 6.69 13 19 7 2 83 230 8 5 15 20 126 222 S 9.61 5 8 5 9 4 5 2 3 6 9 22 21 S 3.30 2 5 8 15 6 12 16 23 S 2.60 3 10 - - 11 25 1 1 2 26 37 S 2.15 3 5 2 3 5 6 8 15 8 12 26 28 S 6.00 182 407 49 17 79 60 170 457 133 115 613 648 S 7.84 58 44 - - 13 7 9 12 28 18 108 55 S 10.00 14 10 4 6 18 35 14 10 10 7 60 43 S 6.22 22 41 2 3 12 12 18 19 7 12 61 43 S 91.48 6 8 3 2 6 3 3 3 5 4 23 15 S 154.92 2 4 1 1 3 3 3 2 9 6 S 2.90 36 62 13 20 5 3 7 4 61 61 S 2.61 39 79 31 24 73 41 49 69 118 94 310 141 S 2.61 5 16 2 3 16 20 23 36 S 2.61 8 7 4 9 12 14 S 2.61 10 19 3 7 8 13 21 22 S 2.61 4 9 8 7 3 5 15 13 S 2.61 3 9 2 4 3 6 10 29 8 14 26 34 S 2.61 3 3 1 2 10 25 3 6 13 29 30 41 S 3.91 10 15 5 9 4 6 9 10 28 16 $ 3.32 12 11 18 44 4 6 17 33 12 16 63 49 S 125.59 1 2 - 1 2 2 2 4 S 129.95 3 4 1 1 1 1 1 1 6 4 S 1.15 8 8 8 2 2 17 27 6 7 19 33 52 54 $ 0.90 61 41 41 45 73 41 45 60 31 19 251 93 S 2.39 62 82 15 26 78 104 107 194 72 127 334 316 - - - - - SKU - - CBL 150 CBL 151 CBL 152 CBL 153 CBL 154 CBL 155 CBL 156 CBL 157 CBL 158 CBL 200 CBL 260 CBL 261 CBL275 CBL 290 CBL 291 CBL 292 CBL 293 CBL 294 CBL 295 CBL 296 CBL 300 CBL 301 CBL 302 CBL 303 CBL 304 CBL 305 CBL 306 CBL 307 CBL 308 CBL 500 CBL 501 CBL600 CBL601 CBL602 Warehouse 10 Warehouse 20 Warehouse 30 Warehouse 40 Warehouse 70 Total Average Average Standard Average Standard Average Standard Average Standard Average Standard Average Standard Selling Price Monthly Sales Deviation Monthly Sales Deviation Monthly Sales Deviation Monthly Sales Deviation Monthly Sales Deviation Monthly Sales Deviation S 6.38 14 21 24 75 17 39 3 4 58 81 $ 8.17 24 21 27 50 66 92 38 17 57 67 212 174 S 12.02 7 15 14 18 5 9 4 4 17 27 47 31 S 5.88 6 8 9 17 42 56 31 65 10 15 98 101 S 6.28 158 185 99 60 107 56 124 100 217 145 705 407 S 4.45 18 45 - 7 23 2 4 14 26 41 70 S 4.44 44 36 12 17 25 37 9 9 41 45 131 60 S 6.66 140 125 41 26 87 34 133 110 176 125 577 243 S 6.69 13 19 7 2 83 230 8 5 15 20 126 222 S 9.61 5 8 5 9 4 5 2 3 6 9 22 21 S 3.30 2 5 8 15 6 12 16 23 S 2.60 3 10 - - 11 25 1 1 2 26 37 S 2.15 3 5 2 3 5 6 8 15 8 12 26 28 S 6.00 182 407 49 17 79 60 170 457 133 115 613 648 S 7.84 58 44 - - 13 7 9 12 28 18 108 55 S 10.00 14 10 4 6 18 35 14 10 10 7 60 43 S 6.22 22 41 2 3 12 12 18 19 7 12 61 43 S 91.48 6 8 3 2 6 3 3 3 5 4 23 15 S 154.92 2 4 1 1 3 3 3 2 9 6 S 2.90 36 62 13 20 5 3 7 4 61 61 S 2.61 39 79 31 24 73 41 49 69 118 94 310 141 S 2.61 5 16 2 3 16 20 23 36 S 2.61 8 7 4 9 12 14 S 2.61 10 19 3 7 8 13 21 22 S 2.61 4 9 8 7 3 5 15 13 S 2.61 3 9 2 4 3 6 10 29 8 14 26 34 S 2.61 3 3 1 2 10 25 3 6 13 29 30 41 S 3.91 10 15 5 9 4 6 9 10 28 16 $ 3.32 12 11 18 44 4 6 17 33 12 16 63 49 S 125.59 1 2 - 1 2 2 2 4 S 129.95 3 4 1 1 1 1 1 1 6 4 S 1.15 8 8 8 2 2 17 27 6 7 19 33 52 54 $ 0.90 61 41 41 45 73 41 45 60 31 19 251 93 S 2.39 62 82 15 26 78 104 107 194 72 127 334 316

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