Business, 01.03.2021 22:10 10040813

points) Lion Co is considering using delayed differentiation at their DC. Currently the DC sells 5 different SKUs, each with annual demands that are normally distributed with a mean of 2000 and standard deviation of 1000. The leadtime from their supplier is 2 months and they use a (Q, R) model for each item with a service level of 95%. Under the delayed differentiation approach, the leadtime would remain at 2 months and it would take 5 days to differentiate the item (for a total leadtime of 2 months and 5 days). Determine the average total safety stock under each case (current and with delayed differentiation).

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points) Lion Co is considering using delayed differentiation at their DC. Currently the DC sells 5 d...