Question
Given that the lead time from the Taiwan factory is 9 weeks, how much safety inventory does Epson require across Europe if it targets a
Given that the lead time from the Taiwan factory is 9 weeks, how much safety inventory does Epson require across Europe if it targets a CSL of 99%? b. Epson is considering the supply chain strategy of Postponement ("delayed differentiation"). They will ship a generic ("vanilla box") printer without the power supply unit or a language-specific user manual to a central DC located in Ansbach, Germany. When an order is received from any country, the DC will install the appropriate power supply unit, pack the correct user manual, and ship the printers. The generic printers will still be manufactured in Taiwan with the same lead time of 9 weeks. How much saving in safety inventory (# of printers) can Epson expect as a result of the postponement strategy? c. Suppose each printer costs Epson 300. The holding cost rate is 40% per year. If final assembly in the European DC adds 6 to the production cost of each printer would you recommend the postponement strategy? [Assume 50 weeks in the year.]
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