Question: Using the following table, answer subsequent questions: Store 1 Store 2 Warehouse Avg Demand (daily) 30 35 std demand 5 5 lead time to manufacturer

Using the following table, answer subsequent questions:

Store 1

Store 2

Warehouse

Avg Demand (daily)

30

35

std demand

5

5

lead time to manufacturer (daily)

5

4

2

std lead time

0

0

0

lead time to warehouse (daily)

3

2

  1. What is the safety stock for Store 1 (98% service level) in option a?

  1. What is the safety stock for Store 2 (98% service level) in option a?

  1. What is the safety stock for Store 1 (98% service level) in option b?

  1. What is the safety stock for Store 2 (98% service level) in option b?

  1. What is the average demand for the warehouse?

  1. What is the safety stock for the warehouse in option b?

  1. What is the total safety stock in a (total of two stores not including manufacturer)

  1. What is the total safety stock in b (two stores + warehouse)

  1. If the order size is 100 units, what is the expected average inventory for store 1 in option a?

  1. Please discuss these two network designs (cons and pros) in great detail (300 words)?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!