Question: Question 3 1 pts 3. As the logistics representative on a manufacturer's sales team, you have been asked to quantify the benefits that can be

Question 3 1 pts 3. As the logistics

Question 3 1 pts 3. As the logistics representative on a manufacturer's sales team, you have been asked to quantify the benefits that can be sold to a customer using more consistent service and transportation. The customer wants 95 percent case availability from its distribution centers that are resupplied from the manufacturer. The average daily demand in cases from the customer's DC is 1500 units with a standard deviation of 150. Historically, the replenishment performance cycle has been 14 days with a standard deviation of 6 days. The customer has traditionally used a 20 percent inventory carrying cost, and the average value of each case is 400 SEK. The customer orders weekly an order quantity of 10500 units. Note! Within the boxes-only write numbers, no "spaces" a) The kis (Select] the average inventory level is [ Select] units and annual carrying cost for the current situation is [Select] tsek/year b) Calculate the impact of reducing the manufacturer's performance cycle deviation to 2 days; The k is [Select] the average inventory level is [Select] units and annual carrying cost for the current situation is (Select] tsek/year c) Compared to b)- is it better to reduce the performance cycle to 8 days? [Select] (Type YES or NO)

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