Question: Q6 - Demand aggregation Koffeesrus sells decaffeinated (decaf) coffees separately in east and west markets from two distribution centers (East-DC and West-DC). Mean and standard

Q6 - Demand aggregation Koffeesrus sells

Q6 - Demand aggregation Koffeesrus sells decaffeinated (decaf) coffees separately in east and west markets from two distribution centers (East-DC and West-DC). Mean and standard deviation of weekly demand and lead time at each DC are summarized in Table 6. Koffeesrus uses continuous-review policy. Koffeesrus targets CSL of 95%. Demands at the distribution centers are independent. Table 6: Demand and lead time West-DC D = 20 East-DC D = 10 Op = 3 L = 4 CSL = 0.95 Mean of demand (units per week) Standard deviation of demand (units per week) Lead time for replenishment (weeks) Cycle service level (CSL) Op = 4 L = 4 CSL = 0.95 (6-1) Koffeesrus decides to aggregate demands by serving both east and west markets for the decaf coffees from a central distribution center (CDC). What are the weekly demand and the standard deviation of weekly demand at CDC? Answer Weekly demand at CDC Standard deviation of weekly demand at CDC units units (6-2) What is the safety inventory of the decaf coffees at CDC with the same lead time and CSL (L=4 and CSL=0.95)? Safety inventory of decaf coffee at CDC units

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