In and Out burger in Los Angeles orders their beef from a Canadian supplier. The supplier ships

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In and Out burger in Los Angeles orders their beef from a Canadian supplier. The supplier ships directly to the 12 different restaurants in the LA area. In and Out wants to determine if it makes sense to have a pooling DC. Currently, it takes 2 weeks to ship to each store.

Demand at each location is independent and normally distributed with a mean of 25,000 patties per year and a standard deviation of 10,000. They want a 99% service level. In the pooling case, the time from the pooling DC to a location is 2 days. Compare the total safety stock in each case.

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Related Book For  book-img-for-question

Service Systems Engineering And Management

ISBN: 978-0367781323

1st Edition

Authors: A. Ravi Ravindran ,Paul M. Griffin ,Vittaldas V. Prabhu

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