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A retail store Shortly carries a modern white kitchen ceiling lamp that is quite popular and they want to achieve a cycle service level of 96%. The order lead time is 6 weeks and the store uses Q system to manage the item. Every time the store orders 1000 units. The anticipated demand during lead-time can be approximated by a Normal distribution curve with a mean of 600 units and a standard deviation of 300 units. The average demand is estimated to be 100 units per week throughout the year. Answer the following questions with regard to this SKU.
1. How much safety stock should Shortly carry?
2. What is their reorder point (ROP)?
3. How much cycle inventory is the store carrying?
4. How much transportation inventory does the store carry?
5. What is the total inventory?
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This task requires you to analyze the likelihood and impacts of the risks you have identified and evaluate and prioritise them for treatment. Use the information gathered in previous parts and also the case study given complete the given tasks.
Discuss how cultural differences in moral beliefs and norms may be relevant in decision problems that a manager may encounter. How should managers think and act when confronted with moral disagreement that is based on cultural differences? Are there ..
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