Question: Need help with this question Frequency of ABC Tools has divided its northeast U.S. market into three customer with mean and standard deviation as shown


Need help with this question
Frequency of ABC Tools has divided its northeast U.S. market into three customer with mean and standard deviation as shown in Table 5.18. Assume regions. The weekly demands at the regions are normally distributed has three dedicated DCs, one for each demand region and maintains that the regional demands are independent. Currently, the company option to have just one central DC to serve all three demand regions. an 80% service level to its customers. The company is studying a new TABLE 5.18 Weekly Demands (Exercise 5.13) Standard Region Mean Deviation 1 2000 100 2 3000 50 3 1500 50 Given the replenishment lead time from the plant to any DC is 1 week, (a) Determine the current level of safety stock in the supply chain answer the following questions: under the present (three DC) system. (b) Compute the new level of safety stock in the supply chain under the new option (one central DC), if the company continues to maintain 80% service level to its customers. (c) Suppose the company wants to maintain the current level of sale stock found in part (a) for the new (one DC) option also. What will be the new Service Level to its customers in that caseStep by Step Solution
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