Compute the new level of safety stock in the supply chain

Assignment Help Civil Engineering
Reference no: EM131408668

ABC Tools has divided its northeast U.S. market into three customer regions. The weekly demands at the regions are normally distributed with mean and standard deviation as shown in Table 5.18. Assume that the regional demands are independent. Currently, the company has three dedicated DCs, one for each demand region and maintains an 80% service level to its customers. The company is studying a new option to have just one central DC to serve all three demand regions.

1664_a43bf1b3-9b30-4c19-8141-036054d5a28a.png

Given the replenishment lead time from the plant to any DC is 1 week, answer the following questions:

(a) Determine the current level of safety stock in the supply chain under the present (three DC) system.

(b) Compute the new level of safety stock in the supply chain under the new option (one central DC), if the company continues to maintain 80% service level to its customers.

(c) Suppose the company wants to maintain the current level of safety stock found in part (a) for the new (one DC) option also. What will be the new Service Level to its customers in that case?

Reference no: EM131408668

Questions Cloud

Discuss about the digital laws and legislation : Identify one (1) evidentiary issue that could be presented regarding the admission of digital evidence at trial. Next, suggest one (1) way in which the court could take to resolve the issue that you have identified. Include one (1) example of such..
What are proteins : Question: What are proteins? How can diversity of proteins in living organisms be explained?
Determine the current levels of safety stock : Determine the current levels of safety stock for the two components at each of the five regional DCs.
Headache from the injury : A 46 year old male sat down hard on a bench banging the lower part of his head against the rail behind. There was a large "goose-egg" on his head and lots of pain. He developed a headache from the injury but felt better within a couple of hours an..
Compute the new level of safety stock in the supply chain : Compute the new level of safety stock in the supply chain under the new option (one central DC), if the company continues to maintain 80% service level to its customers.
Discuss development-bench test of complete asset inventory : Assume that you are employed by Sahara, Inc. Sahara Inc is an up-and-coming on-line reseller of books, video games, and small household appliances. Projections for 2016 sales are looking up, and expected to be in the $750,000,000 dollar range, wit..
What is the formula for binomial expansion : What is the formula for Binomial Expansion often used in Genetics?
Substrate-level phosphorylation in glycolysis : How many ATPs are generated by substrate-level phosphorylation in glycolysis? How many NAD+ are reduced to NADH in glycolysis?
What are the negative impacts of this risk pooling strategy : Suppose the company decides to close three warehouses and assign their demands equally to the remaining five warehouses.

Reviews

Write a Review

Civil Engineering Questions & Answers

  What is the maximum deceleration possible

The car of Prob. 3/59 is traveling at 25 mi/hr when the driver applies the brakes, and the car continues to move along the circular path. What is the maximum deceleration possible if the tires are limited to a total horizontal friction force of 24..

  Calculate the force

Calculate the force (in Kn) a punch press must exert if it is to punch out a large washer from a strip of 5-mm thick sheet steel with an ultimate shear strength of 400 MPa. The washer dimensions are as follows: hole diameter is 27 mm. outside diam..

  How can you prove that your answer is correct

Would it be possible to compact the above soil at a water content of 13.5% to a dry density of 2.00 Mg/m3? How can you prove that your answer is correct?

  Determine the required power input to thermoelectric cooler

A thermoelectric cooler has a COP of 0.15 and removes heat from a refrigerated space at a rate of 180 W. Determine the required power input to the thermoelectric cooler, in W.

  Determine the net power output of the engine

The cycle has a thermal efficiency of 35%, and steam changes from saturated vapor at 300 C during the heat addition process. If the mass flow rate of the steam is 2kg/s, determine the net power (kw) output of this engine.

  Determine by trigonmetry the magnitude and direction

knowing that both members are in compression and that the force is 15 KN in member A and 10 KN in member B, determine by trigonmetry the magnitude and direction of the resultant of the force applied to the bracket by member A and B.

  What is the mass flow rate of steam around the cycle

What is the mass flow rate of steam around the cycle and the rate of heat rejection in the condenser? Find the thermal efficiency of the power plant and how it compares with that of a Carnot cycle.

  Determine the moment created by the two forces

Treat the problem as two-dimensional. The moment is positive if counterclockwise, negative if clockwise.

  What is the distance uncertainty at the surface of ellipsoid

if a hand-held GPS unit locates a latitudinal position with an uncertainty of + - 0.02-seconds, what is the distance uncertainty at the surface of the ellipsoid.

  How to draw the expected water table profile along the line

Compute the water table profile drawn in part B. Provide a detailed description of your methodology, and limit your solution to include only 4 image wells. Plot the profile, and provide drawdown amounts at X = -400 m, -200 m, -100 m, 100 m, 200 m,..

  What is the required detention time and tank

A chlorination process is to be used to disinfect a wastewater treatment plant effluent. The plant treats 1.8MGD (million gallon per day). The water entering this unit has about 4500mg/L of coliforms, and the effluent target is 0.1 mg/L of coliforms.

  Determine the resultant in magnitude

The four coplanar forces are acting at a point as shown in the diagram. Determine the resultant in magnitude and direction analytically and graphically.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd