Question: QUESTION 30 A car manufacturer makes 2 models (Model A and Model B). They currently have a unique brake system for each model and carry

QUESTION 30 A car manufacturer makes 2 models

QUESTION 30 A car manufacturer makes 2 models (Model A and Model B). They currently have a unique brake system for each model and carry safety stock for each model's brake system. They are considering using a common brake system for both models. The plant wants to maintain a service level of 99% (see attached Standard Normal Table). Delivery lead time for the brake systems is six (6) days (regardless of whether they are unique or common). Daily demand information is: Car Model Mean Daily Standard Deviation Demand of Demand Model A 800 100 Model B 1,800 200 How many fewer brake systems will need to be carried in total Safety Stock if the manufacturer switches to a common component strategy (use the same brake system for both models) from the differentiated strategy (unique brake system for each model)? Standard Normal Table.pdf

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