Which requires more units of safety stock-venti cups

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Reference no: EM132163891

Starbucks sells hot drinks in three sizes: tall, venti, and grande. A drink is sold in the appropriately sized paper cup, and the barista always places a cardboard thermal sleeve on the cup so the customer can hold it comfortably. The same sleeve fits all three cup sizes. The cups and the sleeves are ordered from different suppliers but the lead time is the same for both cups and sleeves. Starbucks targets the same cycle service level (i.e., the probability that all demand will be met during the cycle) for each type of cup as well as for sleeves. Which requires more units of safety stock, venti cups or thermal sleeves? For which product, does safety stock add more days to the flow time, venti cups or thermal sleeves?

Reference no: EM132163891

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