(Answered) Supply chain home depot sells the lawnboy t650 lawn mowers

Management Studies

Supply Chain
Home Depot sells the LawnBoy T650 lawn mowers at 49 stores in the Pacific Northwest. Weekly demand for the T650 at each of the stores is identical and given by:
X ~ Normal (50, 30)

Assume that the demands at the 49 stores are independent of each other. The manufacturer's lead time for supplying the mowers is 9 weeks. Home Depot has a stated policy of 90% cycle service level for mowers.

a. How much safety stock is required at each store?

b. The chain is considering centralizing the inventory of the T650 to a distribution center that will serve all 49 stores. How much safety stock would be required at the DC to provide the same cycle service level of
90%?

c. If the cost of each mower is $400, and Home Depot uses a 30% holding cost rate, what is the annual savings for the chain in inventory holding costs as a result of the centralization?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91242829
Price:- $50

Verified Expert

Priced at $100 Now at $50, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 a bitcoin payment service might receive thousands of

1. A Bitcoin payment service might receive thousands of payments from various users near-simultaneously. How can it tell whether a particular user Alice who logged into the payment service website and initiated the payme ...

What is the relationship between business intelligence and

What is the relationship between business intelligence and analytics? How can managers use business analytics and business intelligence to create successful organizational outcomes? Please provide a scenario, based on yo ...

Should businesses attempt to solve societal ills or should

Should businesses attempt to solve societal ills, or should businesses merely maximize shareholder wealth? Some individuals argue that the purpose of a business is to make a profit, and maximize shareholder wealth, while ...

Part a a local tire distributor for expects to sell 9600

Part (A): A local tire distributor for expects to sell 9,600 steel-belted tires of a certain size and tread design next year. Assume that EOQ model assumptions are valid. Each tire costs $50, ordering cost is $80 per ord ...

1 do you feel that forecasting methods could be beneficial

1. Do you feel that forecasting methods could be beneficial during a crisis? If so, which ones would you recommend in regards to the Armenia earthquake of 1999? 2. It is often said that benchmarking is the backbone of th ...

1 in a 100 words explain how to develop sustainability2 is

1. In a 100 words, explain how to develop sustainability. 2. Is performance-based pay effective? Why or why not? 3. How might you contribute to society as a business professional?

Your health care organization has had several small

Your health care organization has had several small compliance incidents in the past two years, and the organization is now motivated to update their compliance program. Your executive leadership team asked you to review ...

1 is transformational leadership always moral leadership2

1. Is transformational leadership always moral leadership? 2. How can an organisation be classified in terms of its social responsibility? 3. Why in many companies, labor efficiency and equipment utilization have been ov ...

Employee compensation and benefitsfor this paper you

Employee Compensation and Benefits For this paper, you must: Select a position in your organization for which you have access to its compensation. Identify which kind of job evaluation is used for that position. Classify ...

Please answer the following questions for the company

Please answer the following questions for the company Pfizer. 1. Research what strategic alliances your firm has enter in the past three years. If there are several of these, choose the three you identify as the most imp ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert