Question
The supply chain for a popular gaming console has the following structure: Retailer gets product from a distributor, with a lead time of 3 weeks.
The supply chain for a popular gaming console has the following structure:
Retailer gets product from a distributor, with a lead time of 3 weeks.
Distributor gets product from the manufacturer with a lead time of 5 weeks.
Manufacturer has a production lead time of 5 weeks.
The manufacturer keeps finished goods inventory, and wants to set the reorder point for this finished goods inventory. When finished goods inventory runs low (lower than reorder point) it takes 5 weeks to replenish as that is the production lead time.
What is the echelon lead time for the finished goods inventory at the manufacturer?
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