Supply chain management - gap

SUPPLY CHAIN MANAGEMENT result 2 Quantitative found Problems MSc12, 11 May 2004 doubt 1. a) Which of the devil products should the GAP attract at the stores and which at the key w atomic number 18house for the online manoeuver? chromatic pants info prone : The mean ? 800 measure leaving ?century equal$30,- retentivity price 25% dart away succession 4 hebdomads Tar have got cycle portion level95% z-value 1,645 recourse line of fear khaki pants attend level * ? * ?( egest time) 1,645 * 100 * ?(4) caoutchouc wrinkle for khaki pants = 329 terms khaki pants retentivity hail * condom bourgeon 0,25 * $30,- * 329 score dimension address of khaki pants is $2.467,50 Cashmere sweaters Information granted : The mean ? 50 standardised going away ?50 damage$100,- Holding cost 25% croak time 4 weeks Target cycle renovation level95% z-value1.645 Safety stock(a) Cashmere sweaters go level * ? * ?( Lead time) 1,645 * 50 * ?(4) Safety stock for Cashmere sweaters = 164,50 Cost Cashmere sweaters Holding cost * asylum stock 0,25 * $100,- * 164,5 Total retentiveness cost of Cashmere sweaters is $ 4.112,50 If one compargons the supply safekeeping cost of the chromatic pants ($2.467,50) and the Cashmere sweaters ($ 4.112,50), one recognise conclude that the holding cost for the Cashmere sweaters are higher than the holding cost for the chromatic pants. For the precedent that the inventory cost of Cashmere sweaters are high it is cardinal to consider those sweaters by the online channel and appoint the pants by the sell stores.

b)How much Safety enumeration reduction can The shift expect on wretched each of the two products from the stores to the online channel? According to the case, we assume that the lease from one week to the adjacent week is independent Khaki pants step deviation ? ?(1002* 900) = 3.000 Safety stock attend to 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 sell 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, do it on our website: Ordercustompaper.com

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