MANAGING THE VALUE CHAIN HW 11/12
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a mean of 500 and a standard deviation of 300. Foxconn, the assembler, takes four weeks to supply an
Apple order. Apple is targeting a CSL of 95 percent and monitors its inventory continuously. How much
safety inventory of cell phones should the Apple store carry? What should its ROP be?
Question 2 (Due 12/4): Weekly demand for jeans at a Gap store is normally distributed, with a mean of
100 and a standard deviation of 50. The supply plant takes three weeks to supply a Gap order. The store
manager monitors its inventory continuously and reorders jeans when the available inventory drops
below 350. How much safety stock does the store carry? What CSL does the store achieve? If the store
manager wants to target a CSL of 95 percent, how much safety inventory of jeans should the store
carry? What should its ROP be?
Question 3 (Due 12/4): Weekly demand for cell phones at a Best Buy store is normally distributed, with a
mean of 300 and a standard deviation of 200. The supplier takes two weeks to supply a Best Buy order.
Best Buy is targeting a CSL of 95 percent and monitors its inventory continuously. How much safety
inventory of cell phones should Best Buy carry? What should its ROP be?
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