Return to the Sams Club store in Exercise 4. Assume that the supply lead time from HP

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Return to the Sam’s Club store in Exercise 4.

Assume that the supply lead time from HP is normally distributed, with a mean of 2 weeks and a standard deviation of 1.5 weeks.

How much safety inventory should Sam’s Club carry if it wants to provide a CSL of 95 percent? How does the required safety inventory change as the standard deviation of lead time is reduced from 1.5 weeks to zero in intervals of 0.5 weeks?

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Supply Chain Management

ISBN: 9780132743952

5th Edition

Authors: Sunil Chopra , Peter Meindl

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