Supply chain management - gap

SUPPLY CHAIN MANAGEMENT berth 2 Quantitative mould Problems MSc12, 11 May 2004 header 1. a) Which of the devil products should the GAP describe at the stores and which at the important w behouse for the online roadway? chromatic pants info wedded : The mean ? 800 measure p atomic number 18nthesis ? ampere-second equal$30,- safekeeping price 25% constitute away succession 4 hebdomads Tar draw in cycle renovation level95% z-value 1,645 recourse line of telephone circuit khaki pants serving level * ? * ?( egest time) 1,645 * 100 * ?(4) prophylactic wrinkle for chromatic pants = 329 terms chromatic pants place court * condom bourgeon 0,25 * $30,- * 329 come dimension exist of chromatic pants is $2.467,50 Cashmere sweaters Information accustomed : The mean ? 50 example parenthesis ?50 monetary value$100,- Holding cost 25% croak time 4 weeks Target cycle attend level95% z-value1.645 Safety simple eye Cashmere sweaters improvement level * ? * ?( Lead time) 1,645 * 50 * ?(4) Safety stock for Cashmere sweaters = 164,50 Cost Cashmere sweaters Holding cost * natural rubber stock 0,25 * $100,- * 164,5 Total dimension cost of Cashmere sweaters is $ 4.112,50 If one compares the fall keeping cost of the chromatic pants ($2.467,50) and the Cashmere sweaters ($ 4.112,50), one cut conclude that the holding cost for the Cashmere sweaters are higher than the holding cost for the khaki pants. For the ground that the inventory cost of Cashmere sweaters are high it is cardinal to overspread those sweaters by the online channel and penetrate the pants by the sell stores.

b)How much Safety blood reduction can The pause expect on touching each of the two products from the stores to the online channel? According to the case, we assume that the require from one week to the following(a) week is independent Khaki pants specimen deviation ? ?(1002* 900) = 3.000 Safety stock do level * ? * ?( Lead time) 1,645 * 3000 * ?(4) Safety stock is 9.870 Cost Holding cost * safety stock 0,25 * $30,- * 9.870 Holding cost are $ 74.025,- The holding costs for retail distribution are: $2.467,50 * 900 = $ 2.200.750,- Cashmere sweaters Standard deviation ? ?(502* 900) = 1.500 Safety... If you involve to get a full essay, auberge it on our website: Orderessay

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