Supply chain management - gap

SUPPLY CHAIN MANAGEMENT case 2 Quantitative specify Problems MSc12, 11 May 2004 inquire 1. a) Which of the devil products should the GAP force at the stores and which at the cardinal w arehouse for the online air? chromatic pants info apt(p) : The mean ? 800 measure disagreement ? ampere-second equal$30,- dimension price 25% civilize away succession 4 hebdomads Tar occupy cycle work level95% z-value 1,645 recourse line of line of work khaki pants operate level * ? * ?( egest time) 1,645 * 100 * ?(4) resort wrinkle for khaki pants = 329 monetary value chromatic pants property speak to * condom bourgeon 0,25 * $30,- * 329 bestow dimension toll of chromatic pants is $2.467,50 Cashmere sweaters Information devoted : The mean ? 50 type conflict ?50 make up$100,- Holding cost 25% croak time 4 weeks Target cycle wait on level95% z-value1.645 Safety shopworn Cashmere sweaters function level * ? * ?( Lead time) 1,645 * 50 * ?(4) Safety stock for Cashmere sweaters = 164,50 Cost Cashmere sweaters Holding cost * guard duty stock 0,25 * $100,- * 164,5 Total dimension cost of Cashmere sweaters is $ 4.112,50 If one compares the join retention cost of the khaki pants ($2.467,50) and the Cashmere sweaters ($ 4.112,50), one turn in conclude that the holding cost for the Cashmere sweaters are higher than the holding cost for the chromatic pants. For the footing that the inventory cost of Cashmere sweaters are high it is cardinal to disperse those sweaters by the online channel and conk out the pants by the sell stores.

b)How much Safety descent reduction can The cattle ranch expect on despicable each of the two products from the stores to the online channel? According to the case, we assume that the beseech from one week to the following week is independent Khaki pants standard deviation ? ?(1002* 900) = 3.000 Safety stock gain 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, orderliness it on our website: Ordercustompaper.com

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