Business, 18.02.2021 21:10 gdubak

The Gap sells 7 t-shirts of different colors. US demand for each color is independent and normally distributed with a mean of 100,000 per year and standard deviation of 34,000. They want a 95% service level on each color. Leadtime from the supplier (located in Malaysia) is 3.6 months. Do the following: A. Compute the total safety stock.
B. Consider the case where the Gap dyes their shirts in the US. The supply chain now is a leadtime from the manufacturer (who ships white shirts) to the dying operation is 3.5 months. Leadtime from the dying operation to the DC is 0.2 months. Determine the total safety stock in this case.

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The Gap sells 7 t-shirts of different colors. US demand for each color is independent and normally d...