Question: Please type the answer by computer, so i can see it clearly, thank you!!!! Disposable medical gowns are provided by a local company to general
Please type the answer by computer, so i can see it clearly, thank you!!!!
Disposable medical gowns are provided by a local company to general outpatient clinics (GOPCs) in four Hong Kong districts controlled by the Hospital Authority (HA). Each district's average demand each week is 10,000 gowns, with a standard deviation of 1,000 gowns.

Assume that the one-week replenishment lead time is constant and is the same for both options.
When answering the following questions, show the units and processes of calculation.
Question:
1(a) Determine the total safety stock requirement for Option 1 (with 4 warehouses) and Option 2 (with 1 warehouse) if a 97.72% service level is required.
1(b) Justify the use of Option 1 with TWO reasons from a logistics managers viewpoint.
The company is facing two warehousing options. Option 1 Operate a decentralized system of 4 warehouses with each warehouse serving one district. Each warehouse orders independently of the other warehouses. Option 2 Operate a centralized warehouse to fulfill the demand of 4 districtsStep by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
