Consider the following supply chainLet Lbe the lead time from the factory to the cross-dock and Lbe the lead time from the cross-dock to each retailer. Let L= L+ Land assume L is fixed.a) Let L=0, L=L, that is, the cross-dock is very close to the factory. Compute the total amount of safety stock in the system if the daily demand at each retailer follows a normal distribution with average and standard deviation of D and S, respectively.b) Let L=L, L=0, that is, the cross-dock is very close to the retailers. Compute the total amount of safety stock in the system if the daily demand at each retailer follows a normal distribution with average and standard deviation of D and S, respectively.c) Now determine the most beneficial place to locate the cross dock by varying L(that also varies L= L- L). Again, daily demand follows a normal distribution with average and standard deviation of D and S, respectively.
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