Compare in-transit inventory and the safety stock

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Reference no: EM13841912

SUPPLY chain management question; please answer the following by showing all your work

Consider a four link supply chain with the following data:

Link 1- using a rail- lead time- 3-5 days

Link 2 - using water - lead time - 16-22 days

Link 3 - using a rail - lead time 6-9 days

Link 4 - Using truck - lead time 2-4 days

a) The material enters North America from overseas supplier at the end of Link2. Daily demand is 400 units with no demand uncertainty. Treat each range as a measure of 6 sigma variation. Use a service level of 0.99 and estimate safety stock to be carried by the customer.

b) Compare in-transit inventory and the safety stock with another supplied who can supply by road with a lead time of 1-2 days.

c) Select a measure of risk and estimate it for each of the two supply chains.

Reference no: EM13841912

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