Question: 1) A) A DC in A orders items from a supplier in the B. The leadtime from the supplier is 3 weeks. Annual demand for

1) A) A DC in A orders items from a supplier in

1) A) A DC in A orders items from a supplier in the B. The leadtime from the supplier is 3 weeks. Annual demand for the item is normally distributed with a mean of 4000 and standard deviation of 1200. The DC uses a service level of 90% and they use a (Q, R) system with Q = 350. a. Determine the average cycle stock. b. Determine the average pipleline stock. c. Determine the average safety stock. B) A company ships parts from a central DC in A to a regional DC in B. Each part is 5 cubic feet and costs $100 each. They are considering a rail mode that has a leadtime of 18 days and a standard deviation of 6 days. The transportation cost is $1200 per rail car, and each rail car container holds 2500 cubic feet (no weight limit), though the company can only effectively utilize 80% of the volume. Annual demand is normally distributed with a mean of 5000 and standard deviation of 2000. The DC in B uses a (Q, R) system, with a service level of 95%. GM uses a holding rate of 20%. a. If the DC orders in quantities of 2 rail cars, determine the average total annual inventory plus transportation cost. Assume GM owns the inventory at both locations. b. Explain the main reason(s) why the BDC may have less than a 95% service level in practice. C) What is the average number of inventory turns for the Tucson DC in problem 2? 1) A) A DC in A orders items from a supplier in the B. The leadtime from the supplier is 3 weeks. Annual demand for the item is normally distributed with a mean of 4000 and standard deviation of 1200. The DC uses a service level of 90% and they use a (Q, R) system with Q = 350. a. Determine the average cycle stock. b. Determine the average pipleline stock. c. Determine the average safety stock. B) A company ships parts from a central DC in A to a regional DC in B. Each part is 5 cubic feet and costs $100 each. They are considering a rail mode that has a leadtime of 18 days and a standard deviation of 6 days. The transportation cost is $1200 per rail car, and each rail car container holds 2500 cubic feet (no weight limit), though the company can only effectively utilize 80% of the volume. Annual demand is normally distributed with a mean of 5000 and standard deviation of 2000. The DC in B uses a (Q, R) system, with a service level of 95%. GM uses a holding rate of 20%. a. If the DC orders in quantities of 2 rail cars, determine the average total annual inventory plus transportation cost. Assume GM owns the inventory at both locations. b. Explain the main reason(s) why the BDC may have less than a 95% service level in practice. C) What is the average number of inventory turns for the Tucson DC in problem 2

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