Question: only type writing allow Exercise 1: A few years ago, Heineken, the Dutch brewing company, decided to reduce the length of its average leadtime from

only type writing allow

only type writing allow Exercise 1: A few years ago, Heineken, the

Exercise 1: A few years ago, Heineken, the Dutch brewing company, decided to reduce the length of its average leadtime from 16 weeks to 6 weeks. Assume that the standard deviation of LT is also changed from 3 weeks to 1 week. To make this change, Heineken invested about $1 million. Yet, the service level (97.7%) and weekly demand (50,000 boxes of beer) did not change. Assuming an inventOry cost of $2 for each bOX, what your opinion is about this investment? (z=2)

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