Question: please show formulas Question 1 - 3 Marks A regional DC uses a double order point system. Its replenishment orders come from the Central Supply.

please show formulas

please show formulas Question 1 - 3 Marks A

Question 1 - 3 Marks A regional DC uses a double order point system. Its replenishment orders come from the Central Supply. The Regional DC has the following information: Weekly demand Safety stock Manufacturing lead time Replenishment lead time 175 40 2 1 At what stock level will the DC provide a warning to the Central Supply? At what stock level will the DC actually send the order to the Central Supply? Question 2 - 3 Marks A firm carries 2500 units of Safety stock of Product B at its only DC in the area. If the firm is thinking about having 3 smaller DC's to serve the area instead of the one, how much would each DC have to carry in terms of safety stock? Each DC would carry Total safety stock units of safety stock (in 3 DC's) Question 3 - 2 Marks A firm carries 500 units of Safety stock of Product C in each of its 3 warehouses in the area. If the firm is thinking about consolidating Product Cinto 1 DC, what safety stock would be required? Total Safety Stock

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