In and Out burger in Los Angeles orders their beef from a Canadian supplier. The supplier ships…

In and Out burger in Los Angeles orders their beef from a
Canadian supplier. The supplier ships directly to the 12 different restaurants
in the LA area. In and Out wants to determine if it makes sense to have a
pooling DC. Currently, it takes 2 weeks to ship to each store. Demand at each
location is independent and normally distributed with a mean of 25,000 patties
per year and a standard deviation of 10,000. They want a 99% service level. In
the pooling case, the time from the pooling DC to a location is 2 days. Compare
the total safety stock in each case.