A consider a four link supply chain with the following, Ask an Expert

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a) Consider a four link supply chain with the following data:

Link 1 - using rail - lead time range 3-5 days,

Link 2 - using water - lead time 16-22 days,

Link 3 - using rail - Lead time 6-9 days,

Link 4 - using truck lead time 2-4 days.

The material enters North America from overseas supplier at the end of link 2. Daily demand is 400 units with no demand uncertainty. Treat each range as a measure of 6 sigma variation. Use a service level of 0.99 and estimates safety stock to be carried by the customer.

b) Compare the in-transit inventory and the safety with another supplier who can supply by road with a lead time with a range of 1-2 days.

c) Select a measure of risk and estimate it for each of the two supply chains.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91411743

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