Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Le Bon Pain au Chocolat has 5 stores in small towns in Michigan. Monthly average demand and standard deviation at each store are 141 and

Le Bon Pain au Chocolat has 5 stores in small towns in Michigan. Monthly average demand and standard deviation at each store are 141 and 30, respectively. These demands are independent of each other. The production lead time is 3 days (assume 30 days per month). Assume Le Bon Pain au Chocolat maintains a 95% cycle service level. Let ROP_original be the reorder point that Le Bon Pain au Chocolat calculated optimally in each store (i.e., the reorder point for each store is ROP_original). The company is considering closing all of its current stores and opening an online delivery service through a website. Let ROP_online be the reorder point that Le Bon Pain au Chocolat optimally chooses for the online store. What is the ratio of ROP_online over ROP_original (i.e., ROP_online/ROP_original)? Round your answer to the closest one decimal (e.g., 3.5). By what percentage will the total safety stock change after closing all the offline stores and moving to online? (choose the closest answer)

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

Retailing Management

Authors: Michael Levy

11th Edition

1264157444, 9781264157440

More Books

Students also viewed these General Management questions

Question

CL I P COL Astro- L(1-cas0) Lsing *A=2 L sin(0/2)

Answered: 1 week ago