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ownloads/LOGM%204225%20Assignment%2002%20(1).pdf 2/2 4. The demand of an SKU is normally distributed. The average demand for the SKU is 50 units per day and the standard

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ownloads/LOGM%204225%20Assignment%2002%20(1).pdf 2/2 4. The demand of an SKU is normally distributed. The average demand for the SKU is 50 units per day and the standard deviation of the demand is 15. The lead time is 4 days. The SKU is ordered once a week (7 days). The SKU needs 95% cycle service level. Lead time is constant. What are the maximum and average space requirements? Show all calculations to earn full credit. (20 points) Note: Safety inventory when lead time is constant = zoaVI where z = number of standard deviations needed to achieve the cycle-service level, oq= Standard deviation of demand, L = Lead time 5. Following table shows the demand for 10 SKUs over a 6-week period. [20 points] a. If dedicated storage method is used for the SKUs, what is the space requirement? b. If shared storage method is used, what is the space requirement? c. What is the average space utilization? d. Which of the above methods is more space-efficient? SKU A B D E - Period 1 56 F 47 G 70 56 10 56 13 40 49 66 36 48 24 34 33 48 41 26 26 48 16 63 57 21 ou WN H 25 62 29 67 17 59 58 47 63 20 16 31 69 4 30 66 42 48 41 26 70 42 12 28 - 17 28 33 13 18 14 23 17 53 54 18 42 41 ownloads/LOGM%204225%20Assignment%2002%20(1).pdf 2/2 4. The demand of an SKU is normally distributed. The average demand for the SKU is 50 units per day and the standard deviation of the demand is 15. The lead time is 4 days. The SKU is ordered once a week (7 days). The SKU needs 95% cycle service level. Lead time is constant. What are the maximum and average space requirements? Show all calculations to earn full credit. (20 points) Note: Safety inventory when lead time is constant = zoaVI where z = number of standard deviations needed to achieve the cycle-service level, oq= Standard deviation of demand, L = Lead time 5. Following table shows the demand for 10 SKUs over a 6-week period. [20 points] a. If dedicated storage method is used for the SKUs, what is the space requirement? b. If shared storage method is used, what is the space requirement? c. What is the average space utilization? d. Which of the above methods is more space-efficient? SKU A B D E - Period 1 56 F 47 G 70 56 10 56 13 40 49 66 36 48 24 34 33 48 41 26 26 48 16 63 57 21 ou WN H 25 62 29 67 17 59 58 47 63 20 16 31 69 4 30 66 42 48 41 26 70 42 12 28 - 17 28 33 13 18 14 23 17 53 54 18 42 41

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