The Gap sells seven T-shirts of different colors. U.S. demand for each color is independent and normally
Question:
The Gap sells seven T-shirts of different colors. U.S. demand for each color is independent and normally distributed with a mean of 100,000 per year and a standard deviation of 34,000. They want a 95%
service level on each color. Lead time from the supplier (located in Malaysia) is 3.6 months. Do the following:
a. Compute the total safety stock.
b. Consider the case where the Gap dyes their shirts in the United States. The supply chain now has a lead time from the manufacturer
(who ships white shirts) to the dyeing operation of 3.5 months. Lead time from the dyeing operation to the DC is 0.2 months. Determine the total safety stock in this case.
Step by Step Answer:
Service Systems Engineering And Management
ISBN: 978-0367781323
1st Edition
Authors: A. Ravi Ravindran ,Paul M. Griffin ,Vittaldas V. Prabhu