Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

My Favorite Auditor Gave Me This Book

Authors: Funny Planner Publishing

1st Edition

1676058060, 978-1676058069

More Books

Students also viewed these Accounting questions

Question

4. How has e-commerce affected business-to-business transactions?

Answered: 1 week ago