Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Answer the following. Assignment 10 . LIM MAPS . . Suppose Sam's Club, Operates 500 stores Sells Garmin GPS at $100 at each store Assume
Answer the following.
Assignment 10 . LIM MAPS . . Suppose Sam's Club, Operates 500 stores Sells Garmin GPS at $100 at each store Assume cost of Garmin GPS is $100 Uses continuous review policy Incurs inventory holding cost per year of 20% of product price Suppose at each Sam's Club store, for Garmin GPS, Average weekly demand is 100 units Demand at each store is independent Standard deviation of weekly demand is 20 units Lead time for Garmin to replenish cell phones is 4 weeks Garmin guarantees to deliver GPS 4 weeks after GPS are ordered Questions (10-1) What should the safety inventory (ss) at each store be if Sam's Club wishes to achieve CSL of 0.99 at each store? (10-2) What is total annual holding cost of safety inventory of GPS (total of all Sam's Club stores)? Suppose now Sam's Club decides to sell Garmin GPS only online and ships all GPS from a central warehouse but wishes to increase CSL to 0.99 at the central warehouse (10-3) What is the aggregated demand at the central warehouse? (10-4) What is the standard deviation of the aggregate demand at the central warehouse? (10-5) What should the safety inventory (ss) at the central warehouse be if Sam's Club wishes to achieve CSL of 0.99 at the central warehouse? (10-6) What is the total annual holding cost of safety inventory of GPS at the central warehouse? Assignment 10 . LIM MAPS . . Suppose Sam's Club, Operates 500 stores Sells Garmin GPS at $100 at each store Assume cost of Garmin GPS is $100 Uses continuous review policy Incurs inventory holding cost per year of 20% of product price Suppose at each Sam's Club store, for Garmin GPS, Average weekly demand is 100 units Demand at each store is independent Standard deviation of weekly demand is 20 units Lead time for Garmin to replenish cell phones is 4 weeks Garmin guarantees to deliver GPS 4 weeks after GPS are ordered Questions (10-1) What should the safety inventory (ss) at each store be if Sam's Club wishes to achieve CSL of 0.99 at each store? (10-2) What is total annual holding cost of safety inventory of GPS (total of all Sam's Club stores)? Suppose now Sam's Club decides to sell Garmin GPS only online and ships all GPS from a central warehouse but wishes to increase CSL to 0.99 at the central warehouse (10-3) What is the aggregated demand at the central warehouse? (10-4) What is the standard deviation of the aggregate demand at the central warehouse? (10-5) What should the safety inventory (ss) at the central warehouse be if Sam's Club wishes to achieve CSL of 0.99 at the central warehouse? (10-6) What is the total annual holding cost of safety inventory of GPS at the central warehouse Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started