Question: Problem 4. A Target DC supplies a certain product to 2 Target store A and B. The demand at store A and B is normally

Problem 4. A Target DC supplies a certain product
Problem 4. A Target DC supplies a certain product
Problem 4. A Target DC supplies a certain product
Problem 4. A Target DC supplies a certain product
Problem 4. A Target DC supplies a certain product to 2 Target store A and B. The demand at store A and B is normally distributed. The average monthly demand for store A is 12,000 with standard deviation of 3,000 per month. Store A requires a service level of 98% and it costs store A $50 to order and the order lead time is 0.2 month. The average monthly demand for store Bis 24.000 with standard deviation of 8,000 per month. Store B requires a service level of 96% and it also costs store B SSO to order and the order lead time is also 0.2 month. The monthly demand observed by DC is the sum of store A and B, and the standard deviation is 8,500 per month. For DC, its service level is set at 99% and its order lead time is 0.5 month. The order cost for DC is $100. Assuming the product valued at $30 at the DC, and it costs $5 per unit to ship from DC to store A or B. The inventory carrying cost for Target company is 20% per year for both DC and retail stores. For your convenience, some of the data is summarized in the table below: Monty Demand Monthly Standard Deviation Service Level Lead Time (month) 12.000 3,000 98% 02 Store Store B DC 24.000 36.000 8,000 8.500 02 0.5 99% Question 4.1. What is the EOQ for store A? QUESTION 20 Problem 4 Question 4.2. What is the safety stock for store A? QUESTION 21 Problem 4 Question 4.3. What is the average inventory level for store A? QUESTION 22 Problem 4. Question 4.4. What is the EOQ for store B? QUESTION 23 Problem 4. Question 4.5. What is the safety stock for store B? Question 4.6. What is the average inventory level for store B? QUESTION 25 Problem 4. Question 4.7. What is the average inventory level for the whole supply chain? QUESTION 26 Problem 4 Question 4.8. What is the average inventory level for DC only

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