Refer to examples 9 and 12 and explain why there is a reduction in safety stock
ID: 429862 • Letter: R
Question
Refer to examples 9 and 12 and explain why there is a reduction in safety stock due to aggeration. 9. Return to the Epson data in Exercise 7. Assume that demand in different countries is not independent. Demand in any pair of countries is correlated with a correlation coefficient of . Evaluate the holding cost savings that Epson gains as a result of building a European DC as increases from 0 (independent demand) to 1 (perfectly positively correlated demand) in intervals of 0.2. data from exercise 7Weekly Demand for Epson Printers in Europe Country Mean Demand Standard Deviation France 3000 2000 Germany 4000 2200 Spain 2000 1400 Italy 2500 1600 Portugal 1000 800 UK 4000 2400
12) DoorRed Pharmacy replenishes one of its best-selling drugs using a continuous review policy. Daily demand for the drug is normally distributed, with a mean of 300 and a standard deviation of 100. The wholesaler can process a replenishment request in two days. The current replenishment policy is to order 1,500 units when there are 750 units on hand. a. What is the cycle service level that DoorRed achieves with its policy? b. What is the fill rate that DoorRed achieves with its policy? c. What change in fill rate would DoorRed achieve if it increased its reorder point from 750 to 800?Weekly Demand for Epson Printers in Europe Country Mean Demand Standard Deviation France 3000 2000 Germany 4000 2200 Spain 2000 1400 Italy 2500 1600 Portugal 1000 800 UK 4000 2400
Explanation / Answer
Assume that demandin different countries is not independent. ...Demand in any pairof countries is correlated with a correlation coefficient of . 2. 10. Evaluate the holding cost savings that Epson gains as a resultof building aEuropean DC as increases from 0 (independentdemand) to 1 (perfectly )...
12.Cycle service level that DoorRed achieves with its policy is800 units.250 is the fill