Question: == = = = - = = (Re-order point policies with two retailers) Suppose there is one factory, one warehouse, and two retailers. Suppose the

== = = = - = = (Re-order point policies with two

== = = = - = = (Re-order point policies with two retailers) Suppose there is one factory, one warehouse, and two retailers. Suppose the delivery lead time from the factory to the warehouse is Normal (M = 40, SD = 2), and the delivery lead time from the warehouse to each retailer is Normal (M = 10, SD = 1). Also suppose that the time between purchase requests at each retailer is Normal (M = 1, SD = 0.2). The warehouse follows an ROP policy with ROP 50 and Q* 100, and both retailers follow an ROP policy with ROP = 10 and Q* = 50. It costs $75 each time a retailer places an order with the warehouse, and $150 each time the warehouse places an order with the factory. It also costs $0.50 per day for each unit in inventory at a store, $0.10 per day for each unit in inventory at the warehouse, and $0.10 per day for each unit in transit. We are considering an alternative supply chain configuration where the factory ships directly to the two retailers. Suppose the delivery lead time from the factory to each retailer is Normal (M = 42, SD = 3). Also suppose that it would cost $100 each time a retailer places an order directly from the factory. How would you compare this new configuration to the previous one? = == = = = - = = (Re-order point policies with two retailers) Suppose there is one factory, one warehouse, and two retailers. Suppose the delivery lead time from the factory to the warehouse is Normal (M = 40, SD = 2), and the delivery lead time from the warehouse to each retailer is Normal (M = 10, SD = 1). Also suppose that the time between purchase requests at each retailer is Normal (M = 1, SD = 0.2). The warehouse follows an ROP policy with ROP 50 and Q* 100, and both retailers follow an ROP policy with ROP = 10 and Q* = 50. It costs $75 each time a retailer places an order with the warehouse, and $150 each time the warehouse places an order with the factory. It also costs $0.50 per day for each unit in inventory at a store, $0.10 per day for each unit in inventory at the warehouse, and $0.10 per day for each unit in transit. We are considering an alternative supply chain configuration where the factory ships directly to the two retailers. Suppose the delivery lead time from the factory to each retailer is Normal (M = 42, SD = 3). Also suppose that it would cost $100 each time a retailer places an order directly from the factory. How would you compare this new configuration to the previous one? =

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