A retailer has 7 stores in different cities in northern Ontario. The weekly demand for each store follows the normal distribution with a mean value of 60 and a standard deviation of 10. The retailer is planning to use a single centralized store in northern Ontario and they think the demand in the single store will be equal to the sum of the demand in all 7 cities. It takes 3 weeks for the supplier to send the products to the retailer. Calculate the safety stock for the centralized and decentralized cases if the correlation of demands between different cities is 0.3. Assume the planned customer service level is 98%. Please post answer in excel showing formula and answer
A retailer has 7 stores in different cities in northern Ontario. The weekly demand for each store follows the normal distribution with a mean value of 60 and a standard deviation of 10. The retailer is planning to use a single centralized store in northern Ontario and they think the demand in the single store will be equal to the sum of the demand in all 7 cities. It takes 3 weeks for the supplier to send the products to the retailer. Calculate the safety stock for the centralized and decentralized cases if the correlation of demands between different cities is 0.3. Assume the planned customer service level is 98%. Please post answer in excel showing formula and answer
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter10: Introduction To Simulation Modeling
Section10.5: Introduction To @risk
Problem 19P: In Problem 12 of the previous section, suppose that the demand for cars is normally distributed with...
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A retailer has 7 stores in different cities in northern Ontario. The weekly demand for each store follows the
Please post answer in excel showing formula and answer
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