Question: WALMART determines that the supply lead time from EPSON is actually normally distributed, with a mean of 2 weeks and a standard deviation of 1.5
WALMART determines that the supply lead time from EPSON is actually normally distributed, with a mean of 2 weeks and a standard deviation of 1.5 weeks. How much safety inventory should WALMART carry if it wants to provide a CSL of 95 percent? What is the expected shortage per replenishment cycle (ESC)? What is the fill rate (fr)? What impact does the variability in the supply lead time have on the safety stock? What if the variability in the supply lead time were reduced to zero? What would the safety stock be for a desired CSL of 95 percent?
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