Techtronic operates a single DC in St. Louis. Annual demand for a product they carry is normally

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Techtronic operates a single DC in St. Louis. Annual demand for a product they carry is normally distributed with a mean of 80.6 and a standard deviation of 58.81. There is a 3-week lead time and the target in-stock probability is 99.9%. For this case, we won’t worry about Q, but just the safety stock needed to guarantee the service level. Answer the following:

a. Determine the safety stock required for a single DC.

b. Techtronic is considering splitting into multiple DCs (assume that they do it in a way that demand is split evenly between them). Determine the safety stock if there are 2, 4, and 8 DCs.

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Related Book For  book-img-for-question

Service Systems Engineering And Management

ISBN: 978-0367781323

1st Edition

Authors: A. Ravi Ravindran ,Paul M. Griffin ,Vittaldas V. Prabhu

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