1. Les Schwab tire center reviews the tire inventory every week. The lead time is eight days and demand rate is 650 tires per day. You know the company’s variation, which is 25 tires per day and they allow only 2 stock-outs per year.
a) Compute the target inventory level for a fixed-time period inventory system assuming 52 weeks per year of operation.
b) What does that mean for their ordering policy?
2. Perform an analysis of the social / demographic, technological, economic, environmental / geographic, and political/legal / governmental segments to understand the general environment facing Union Pacific. Describe how Union Pacific will be affected by each of these external factors.