Weekly demand for handbags at Liverpool, a Mexican department store chain, is normally distributed with a mean
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Weekly demand for handbags at Liverpool, a Mexican department store chain, is normally distributed with a mean of 3,000 and a standard deviation of 1,000. The replenishment lead time from the supplier is 4 weeks. Liverpool uses a periodic review policy under which it reorders handbags every 12 weeks. It currently uses an orderup-to level of 50,000. What is the average order size? How much safety inventory of handbags does Liverpool carry? What CSL does it achieve? What order up to level should it use if it wants a CSL of 99 percent?
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Supply Chain Management Strategy Planning And Operation
ISBN: 9781292257891
7th Global Edition
Authors: Sunil Chopra
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