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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

2)Weekly demand for private label washing machines at a department store chain, is normally distributed with a mean of 450 and a standard deviation of 250. The store chain currently has a supply source in China that delivers machines at a cost of 190 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 210 euro. The store chain has an annual holding cost of 25 percent and targets a cycle service level of 99 percent. Should the store chain accept the local -suppliers offer? The question should he anwsered in the folloiwng format: Current Supplier
SS ?0.25
SS Holding Cost + Material Cost /0.25
, Local Supplier
SS ?0.25
SS Holding Cost + Material Cost /0.25
Saving/Loss amount /0.25
Should the manufacturer accept the local supplier's offer - yes/no /0.25??
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