Question: Variability in Transit Time You have to select a transportation carrier to use for replenishing your inventory. Demand for the item is distributed Normally with
Variability in Transit Time
You have to select a transportation carrier to use for replenishing your inventory. Demand for the item is distributed Normally with a mean of units and a standard deviation of units per week. The cost of the item to include delivery is $ You want a CSL of
Option : Delivery leadtime mean weeks, StdDev week
Option : Delivery leadtime mean weeks, StdDev week
Option : Delivery leadtime mean weeks, StdDev week
Q: Suppose you decide to use Option
What is the average safety stock in items? Enter your answer rounded UP to the nearest integer. result:
Q: Suppose you decide to use Option
What is the average safety stock? Enter your answer rounded UP to the nearest integer. result:
Q: Suppose you decide to use Option
What is the average safety stock? Enter your answer rounded UP to the nearest integer. result
Q: You have noticed how much impact that reliable transportation lead time has on your safety stock levels. You want to understand how much more reliable Option weeks average and week standard deviation would need to be to match the safety stock needed in Option
What would Option s new standard deviation of transit time need to be to have the same safety stock level as in Option Enter your answer as a decimal.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
