The Thompson Supply company provides a full range of products for industrial construction. Thompson buys the product from its manufacturer and then resells the product to construction companies. Its products are readily replaceable, and so a stockout typically results in a lost sales. Through its history, Thompson has maintained a reputation for having things in stock. It was often the first sourcing choice of its customers because they could rely on Thompson to have what was needed. The store is open 6 days per week. One particular type of fastener experienced fairly steady demand of 27 units per day with a standard deviation of daily demand of 5 units. The lead time for delivery is 6 days.
The Thompson Supply company provides a full range of products for industrial construction. Thompson buys the product from its manufacturer and then resells the product to construction companies. Its products are readily replaceable, and so a stockout typically results in a lost sales. Through its history, Thompson has maintained a reputation for having things in stock. It was often the first sourcing choice of its customers because they could rely on Thompson to have what was needed. The store is open 6 days per week. One particular type of fastener experienced fairly steady demand of 27 units per day with a standard deviation of daily demand of 5 units. The lead time for delivery is 6 days.
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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