Question
CC Rainger is a business to business distributor of MRO (maintain, repair and operate) products. They have more than 300 retail stores that they serve
CC Rainger is a business to business distributor of MRO (maintain, repair and operate) products. They have more than 300 retail stores that they serve from a central warehouse. The company uses a 98% service level calculated on the proportion that can be satisfied directly from stock (demand fill rate). The cost for placing an order is $100 and the annual holding cost is 20%. They work 365 days/year.
| Item property | Data value | ||
| Lead time from supplier | 14 days | ||
| Lead time to Retailer | 3 days | ||
| Internal price | $25 | ||
| Daily demand | 75 units | ||
| σ, Standard deviation during lead time | 103 units | ||
| |
Step by Step Solution
3.32 Rating (152 Votes )
There are 3 Steps involved in it
Step: 1
D Annual Demand 75365 27375 units H Annual holding cost per item ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Marketing The Core
Authors: Roger A. Kerin, Steven W. Hartley, William Rudelius
5th edition
9780077517083, 78028922, 77517083, 978-0078028922
