QUESTION $3$

$[20]$

A large retail chain is facing issues with stockouts and overstocking in its distribution centres. The company has experienced several lost sales due to stockouts and high holding costs due to excess inventory. The management has asked you to develop a resource planning strategy to optimize inventory levels and improve overall efficiency.

How would you apply the following approaches to achieve the above expected outcome:

$($i$)$ Just$-$In$-$Time $($JIT$),$ and

$($ii$)$ Safety Stock calculations.