Mrs. Jacobsen oversee the distribution of Little Deby products from the plant warehouse to its two distribution centers in the US. The plant warehouse currently has 42,000 units of the company's most popular product, Nutty Bars. However, Mrs. Jacobsen retains 7,000 units of the products at the warehouse as a buffer (safety stock). The Cincinnati's Distribution Center (DC) has an inventory of 12,500 units and daily requirements of 2,500 units. The Phoenix DC has an inventory of 6,000 units and daily requirement of 2,000 units.
a. Define the type of situation/problem described here. Why is this situation a problem for the DC?
b. What tools, approaches, and/or strategies Including the Fair-share method can you use to assign inventory to customers/retailer
c. Detgermine the common day's supply of Nutty Bars to each DC.
d. Given the information and your answer to part (c), use the Fair-Share-allocation logic to determine/calculate the number of Nutty Bars to be allocated to each DC (Cincinnati and Phoenix). Show all your calculation.
d. Assess your result. Include the implications, pros/cons of assigning inventory using this method.