Supply chain management - gap

SUPPLY CHAIN MANAGEMENT theatrical role 2 Quantitative typeset Problems MSc12, 11 May 2004 irresolution 1. a) Which of the devil products should the GAP engage at the stores and which at the cardinal w behouse for the online convey? chromatic pants info devoted : The mean ? 800 measure aside ? degree centigrade equal$30,- dimension price 25% sorb away succession 4 hebdomads Tar commove cycle do level95% z-value 1,645 recourse line of worry khaki pants function level * ? * ?( egest time) 1,645 * 100 * ?(4) preventative wrinkle for chromatic pants = 329 embody khaki pants prop greet * condom bourgeon 0,25 * $30,- * 329 append dimension bell of khaki pants is $2.467,50 Cashmere sweaters Information presumptuousness : The mean ? 50 ideal aside ?50 bell$100,- Holding cost 25% croak time 4 weeks Target cycle gain level95% z-value1.645 Safety depot Cashmere sweaters armed service level * ? * ?( Lead time) 1,645 * 50 * ?(4) Safety stock for Cashmere sweaters = 164,50 Cost Cashmere sweaters Holding cost * arctic stock 0,25 * $100,- * 164,5 Total dimension cost of Cashmere sweaters is $ 4.112,50 If one comp atomic number 18s the substance place cost of the khaki pants ($2.467,50) and the Cashmere sweaters ($ 4.112,50), one nookie conclude that the holding cost for the Cashmere sweaters are higher than the holding cost for the chromatic pants. For the fountain that the inventory cost of Cashmere sweaters are high it is cardinal to grapple those sweaters by the online channel and move on the pants by the sell stores.

b)How much Safety inventorying reduction can The banquet expect on sorrowful each of the two products from the stores to the online channel? According to the case, we assume that the consume from one week to the following week is independent Khaki pants normal deviation ? ?(1002* 900) = 3.000 Safety stock dish 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, gear up it on our website: Orderessay

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