Demand information (per week) Region1: Normal with mean 250, std dev. 90 Region 2: Normal with mean
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Question:
Demand information (per week)
Region1: Normal with mean 250, std dev. 90
Region 2: Normal with mean 180, std dev. 70
Configuration 1: Warehouses at location A and B
When available, use inventory to satisfy customer orders
Service level target of 97%
Lead time factory-to-location is 1 week, H = $0.27 per unit per week
Configuration 2: Warehouse location C (Aggregate demand of A &B)
All other costs and parameters same as the prev. locations
How much safety inventory in each configuration?
Step 1: Find the ROP and SS at each warehouse
Step 2: Find the ROP and SS at new warehouse
Related Book For
Vector Mechanics for Engineers Statics and Dynamics
ISBN: 978-0073212227
8th Edition
Authors: Ferdinand Beer, E. Russell Johnston, Jr., Elliot Eisenberg, William Clausen, David Mazurek, Phillip Cornwell
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