Questions and Decisions1. What do you think about Maxs Internet idea? Would it provide supply chain savings? The following questions may be helpful:A. What order size would you recommend for a Palu store in the current supply network?B. When should a Palu store place its order, assuming demand is steady and predictable?C. In reality, demand fluctuate from week to week. In fact, past weekly demand at each store exhibited a standard deviation of about 30 jackets. How should the ordering policy be adjusted of each Palu store wants its stockout probability not to exceed 5%?D. What are the supply chain inventory savings from adopting the Internet initiative? (For the financial evaluation, assume Palu Gear has an annual cost of capital of 20%.)2. Which order would you recommend for the Christmas initiative if the Internet stricture were adopted? How would your recommendation change if the current supply chain structure remain in place?3. What other suggestions do you have to improve supply chain performance?
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