In and Out burger in Los Angeles orders their beef from a Canadian supplier. The supplier ships
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In and Out burger in Los Angeles orders their beef from a Canadian supplier. The supplier ships directly to the 12 different restaurants in the LA area. In and Out wants to determine if it makes sense to have a pooling DC. Currently, it takes 2 weeks to ship to each store.
Demand at each location is independent and normally distributed with a mean of 25,000 patties per year and a standard deviation of 10,000. They want a 99% service level. In the pooling case, the time from the pooling DC to a location is 2 days. Compare the total safety stock in each case.
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Related Book For
Service Systems Engineering And Management
ISBN: 978-0367781323
1st Edition
Authors: A. Ravi Ravindran ,Paul M. Griffin ,Vittaldas V. Prabhu
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