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2 ) Weekly demand for private label washing machines at a department store chain, is normally distributed with a mean of 4 5 0 and
Weekly demand for private label washing machines at a department store chain, is normally distributed with a mean of and a standard deviation of The store chain currently has a supply source in China that delivers machines at a cost of euro. The lead time required by the supplier is normally distributed with a mean of nine weeks and a standard deviation of five weeks. A European supplier has offered to deliver washing machines with a guaranteed lead time of one week at a cost of euro. The store chain has an annual holding cost of percent and targets a cycle service level of percent. Should the store chain accept the local suppliers offer? The question should he anwsered in the folloiwng format: Current Supplier
SS
SS Holding Cost Material Cost
Local Supplier
SS
SS Holding Cost Material Cost
SavingLoss amount
Should the manufacturer accept the local supplier's offer yesno
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