Consider supply chain for beer company

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Reference no: EM133771679

Question

Consider the supply chain for a beer company consisting of a distributor and a retailer. Whenever an order is placed by the retailer, the distributor is able to see the order as soon as it is placed, but there is a shipment lead time of 2 weeks in the supply chain. If the distributor is stocked out then it takes her 2 additional weeks to get the beer cases. Assume that the supply chain has enough capacity (both production and transportation). The retailer targets a 95% service level, while the distributor targets a 90% service level. What is the expected lead time of replenishment for the retailer? (You can ignore the impact of partial orders being filled)

Reference no: EM133771679

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