Question: Please use Excel. Thank you. Gap currently has three retail stores in San Fernando Valley, CA. Daily demand for each store follows normal distribution and
Please use Excel. Thank you.
Gap currently has three retail stores in San Fernando Valley, CA. Daily demand for each store follows normal distribution and the demand details are listed below. Woodland Sherman Northridge Hills Oaks Demand 100 150 120 mean Demand 13 11 24 SD Gap manages all inventories using a continuous review policy and the supply lead time is 30 days. Gap is targeting a service level of 98% (use Z=normsinv(98%)=2.05 in your calculation). Option 1: with the current setting, how much safety stock Gap should carry in San Fernando Valley? Option 2: Gap plans to consolidate the three retail stores into one super Gap store in San Fernando Valley. With consolidation, how much safety stock Gap should carry in San Fernando Valley? . Please calculate the safety stock requirement in Option 2. Input numbers only, keep 3-decimal if not
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