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Part A is multi sourced from different suppliers in Taiwan. A series of floods shut down production in almost all factories in that location and
Part A is multi sourced from different suppliers in Taiwan. A series of floods shut down production in almost all factories in that location and the part is now severely supply constrained. This table represents sales actuals for Sept-Feb timeframe for Part A. Actuals Forecasted Sales Oct Nov Dec Jan Feb Mar Apr May 120 116 119 113 117 Sep 105 A. Assuming demand is normally distributed over the long term, calculate the safety stock and total order quantity needed to cover Mar-May demand with a target service level of 99%. Assume a stable supply lead time of 3 months. B. How will your approach change when there is supply lead time variability driven by factors independent from those driving demand variability? Part A is multi sourced from different suppliers in Taiwan. A series of floods shut down production in almost all factories in that location and the part is now severely supply constrained. This table represents sales actuals for Sept-Feb timeframe for Part A. Actuals Forecasted Sales Oct Nov Dec Jan Feb Mar Apr May 120 116 119 113 117 Sep 105 A. Assuming demand is normally distributed over the long term, calculate the safety stock and total order quantity needed to cover Mar-May demand with a target service level of 99%. Assume a stable supply lead time of 3 months. B. How will your approach change when there is supply lead time variability driven by factors independent from those driving demand variability
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