SCM $300$

Lab #$4$

PART $1$: Supply Chain Shrinkage

Below is an overview of how materials move through the supply chain. For each set of parties listed you'll also see a loss or defect rate associated with that portion of the supply chain.

A$.$ Suppliers:

B$.$ Manufacturing:

C$.$ Distribution:

D$.$ Retail Store:

$1\mathrm{.}0\%$ of all materials delivered are unacceptable for use

$0\mathrm{.}9\%$ of items produced are defective and are thus not shipped

$1\mathrm{.}1\%$ of the items shipped are lost, stolen, or damaged in transit

$1\mathrm{.}2\%$ of items are stolen$/$damaged and thus unavailable for sale

Question #$1$

Using the calculation for damage and defects discussed in lecture, calculate the number of standardized sets that must be planned for in order to have $7,500$ sets available to the customer each month.