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A coffee retailer owns three cafes. The retailer sells hot coffee, pastries, and prepackaged food items. The retailer would like to sell the prepackaged food
A coffee retailer owns three cafes. The retailer sells hot coffee, pastries, and prepackaged food items. The retailer would like to sell the prepackaged food items only through one store. The average demand for this item for each location is 700 units/day, with a demand variability of 70 units/day for each cafe. The lead-time needed to replenish the stock is one week, while the retailer is looking forward to maintain a 90% of service level. Accordingly, what would the effect be on safety stock, if the three catos are centralized into one? Assuming that the demand for each cafe is independent from the other and the safety factor to achieve 90% of service level is 1.29 O a. Decentralized = 239. Centralized = 153 O b. Decentralized = 717, Centralized = 153 Oc. Decentralized717Centralized = 321 Od. None of these Oo. Decentralized = 239, Centralized - 321 Of Decentralized 414, Centralized - 239 Og. Decentralized - 239, Centralized - 414 Oh. Decentralized - 181, Centralized =128
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