The drug costs $10 per unit. What is the annual holding cost of safety inventory across all

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The drug costs $10 per unit. What is the annual holding cost of safety inventory across all retail stores? If the drug were centralized in one location, what would the annual cost of holding safety inventory at the central location be? What would the annual increase in delivery charge be? Do you recommend centralization?

b. Now consider a drug with daily demand at each store that is normally distributed, with a mean of 5 and a standard deviation of

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Supply Chain Management

ISBN: 9780132743952

5th Edition

Authors: Sunil Chopra , Peter Meindl

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