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A Tata Motors dealership has four retails outlets serving the entire Delhi region. Weekly demand at each retail outlet is normally distributed, with a mean
A Tata Motors dealership has four retails outlets serving the entire Delhi region. Weekly demand at each retail outlet is normally distributed, with a mean of 25 cars and standard deviation of 5. The lead-time for replenishment from the manufacturer is 2 weeks. Each outlet covers a separate geographic area. The Tata Motors dealership is considering the possibility of replacing the four retail outlets with a single large retail outlet. Assume that demand in the central outlet is the sum of the demand across the all four regions. The dealership is targeting a CSL of 90%.Compare the safety inventory in the two options as the correlation coefficient is -1 , 0 and 1.(Z @ 90 % CSL = 1.29)
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