Question
15. For one of its major DIY products, Acme supplies a geographical Distributor who then supplies to the retail stores in that geography. The average
15. For one of its major DIY products, Acme supplies a geographical Distributor who then supplies to the retail stores in that geography. The average demand per week across all the retail stores supplied by the Distributor is 800, with a standard deviation of 90.
The Retail Stores get a standard delivery replenishment time of 3 weeks. In turn, Acmes replenishment time to the Distributor is 9 weeks.
All the three stages of the supply chain expect a 98% service level, given the high margin for this product line (The relevant z-scores from the z-table is given below).
Service Level % 90 91 92 93 94 95 96 97 98 99 99.9 Z 1.29 1.34 1.41 1.48 1.56 1.65 1.75 1.88 2.05 2.33 3.08
What is the Re-Order Point for the Retailer? Group of answer choices
a. 2095
b.2585
c. 2720
d. 2945
e. 3105
16. What is Re-Order Point for the Distributor?
Group of answer choices
a. 9240
b.10240
c.12160
d.12960
e.13420
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