A DC (distribution center) for Target carries 10,000 items. During a particular week, its customers (retailers or possibly wholesalers) ordered 2,600 different SKUs. The DC only satisfied all demand for 2,500 items. So out of 10,000 SKUs, the DC satisfied 9900 items. What is the In-stock Probability? Leave the answer in decimal form.?
Total items = 10,000
Demand satisfied = 9,900
In-stock probability = Demand satisfied /Total items
= 9900/10000
= 99 %
A DC (distribution center) for Target carries 10,000 items. During a particular week, its customers (retailers...
Company B carries 5000 items. Customers ordered 1000 different items last week. Company B was able to fulfill 600 items of the order. What is the stockout probability for last week?
Discussion Questions: 1. What is the purpose of a distribution center? 2. Why does Cameron have eight warehouses? Why do you think Kelly believes six warehouses is better than eight? 3. What is the cost of holding inventory at Cameron? 4. Why should the decision to invest in inventory be different from investing in capital? 5. Do you think it is prudent to evaluate the future of the Atlanta warehouse independently from consideration of the other seven warehouses in the...