The gap is trying to decide which products to carry at its, Ask an Expert

Management Studies

The Gap is trying to decide which products to carry at its 900 retail stores or at its central warehouse to only be sold online. Weekly demand for large Khaki pants at each store is normally distributed with a mean of 800 and a standard deviation of 100. Each pair of pants cost $30. Weekly demand for purple cashmere sweaters at each store is normally distributed with a mean of 50 and a standard deviation of 50. Each sweater costs $100. The Gap has a holding cost of 25%. The Gap uses continuous review policy and the supply lead time for both products is 4 weeks. The Gap also expects a 95% service level.

How much reduction in holding cost per unit sold can The Gap expect from moving each product from its stores to its central warehouse?

Which of the two products would you move from the stores to online?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93120107

Have any Question?Write your Review or question?

Related Questions in Operation Management

No recent fraud has generated more interest and rage than

No recent fraud has generated more interest and rage than the one perpetrated by Bernard Madoff. Madoff was an elite New York investment fund manager who was highly regarded by securities regulators. Investors flocked to ...

Asignment promptin this section more is absolutely better

ASSIGNMENT PROMPT In this section, more is absolutely better! We look at tools and processes that go beyond "brainstorming" to generate a vast array of ideas to meet the project needs. Finally, we will apply critical thi ...

1 colorado fuel sold caustic soda to a buyer in bombay

1. Colorado Fuel sold caustic soda to a buyer in Bombay under a CIF contract. The soda was fully loaded aboard a ship when a labor strike made it impossible for the vessel to sail. As a result, the soda arrived in Bombay ...

Case 1james brown a black cleaner applied in person for a

Case 1 James Brown, a black cleaner, applied in person for a cleaning job at a hospital on June 30th 2016. The job had been advertised in a local newspaper. In his application, James listed his 10 years experience as a c ...

1 should federal authorities be allowed to detain americans

1. Should federal authorities be allowed to detain Americans indefinitely without due process if they are suspected of being involved in terrorism? List 3-5 reasons 2. Buyback examples (countertrade) around the world. Gi ...

1 how can benchmarking assist the supervisor in determining

1. How can benchmarking assist the supervisor in determining whether a staff reduction may be necessary. 2. Myers and Murphy provide tax services to both corporate and consumer clients. This year’s revenue represents a 3 ...

Sean is the head of the logistics group at a medium-size

Sean is the head of the logistics group at a medium-size company that makes plastic parts for other companies, including manufacturers of printers, television sets, computers, and washing machines. His department provide ...

Write a 4-5 page essay that addresses each of the following

Write a 4-5 page essay that addresses each of the following points: 1. Briefly (one succinct paragraph) introduce your current work organization Use the Uber Company: primary products/services, approximate number of empl ...

Explain how the healthcare administrator can ensure that

Explain how the healthcare administrator can ensure that inventory management and the material management cycle is effective (both for patients welfare and the organizations profit margin). Make sure to include the who, ...

Please read the discussion post first after reviewing i

Please read the discussion post first, after reviewing I need a reply to what my classmate had to say about the discussion topic. Basically agreeing or not with a reason to the reply. Here is the discussion post Vince Lo ...

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