1. For the total demand, which SKU has the highest variation in demand, and which has the lowest? What are the sales rank and product category for ? these SKUs? [2 points) 2. For the two SKUs identified below. a. For a 95% service rate, what is the total safety stock inventory for each SKU under the decentralized warehouse structure? (4 points) b. For a 95% service rate, what is the safety stock inventory for each SKU under a centralized warehouse structure? [4 points) Compared to the decentralized structure, what is the percent reduction in safety stock for each SKU with the centralized structure? (2 points) ] For all SKUS: a What is the total inventory cost savings (cycle stock and safety stock) associated with a centralized warehouse compared to the decentralized warehouses? Assume the cost of inventory is 75% of the sales price. [4 points) 2. ABC Warehouse 70 73 13 206 41 350 17 IN 24 37 37 157 "iss's Dais | EXHIBIT 4: CABLE SKUS AT DISTRIBUTOR : Average Inventory w Ware Average SKU Rank SKU Case Warehouse Warehouse Warehouse Warehouse Selling Price Category Ouantity 10 20 CRIISO) s 6. H S 100 37 COLISI S R17 A S 30 101 100 141 73 12.02 25 IVA 41 17 15 CBL 153 5.88 D 50 235 OS CBL154 $ 62 A CE 272 275 200 CBLISS s 4.45 B S 80 53 CILING C HO 6 86 36 41 CB 157 S 6. A 40 309 134 14 350 CRLIS S 6.60 A S SO 17 46 17 CRI 5 2.61 2 20) 11 IN CBL 200 $ 3.30 Y C 120 12 12 9 24 C'BL201 2.60 Y 120 CBL275 s 2.15 B S 00 298 03 258 37 CUL 6.00 A 200 302 524 157 ( CR1292 $ 10 00 15 25 39 16 37 31 CRI20 5 2 B ( 150 16 COL24 91.4 S 12 10 10 7 B CBL 295 134.92 S 17 2 0 CBL 206 B 121 37 CULO S A RO 105 54 106 HL8401 2.61 HO 11 CBL 302 2.61 SO 21 CB1303 26 - ( xo CR 104 5 2.61 c RO 7 15 S 2.61 HO 23 CRIM 261 RO 7 70 73 CBL307 S 3.01 C C 60 15 20 IS CAL $ 112 20 21 12 11 CELSO s 125.59 1 10 4 CB 5401 12S 2 5 3 CRI 5 1.15 150 10 11 CHLOE S (LX) A 00 175 141 CRI 602 2.39 A 200 280 383 Rank A-high demand: B- medium demand: C-low demand: Y-discontinued SKU Category: C - commodity item: S-hard-to-find. Average inventory levele provided in number of units. Source Company files 120 31 20 7 0 12 106 200 400 X 10 73 IR 11 11 33 SKU SB 2 CILIS CHISI CILIS C153 CLISH CRISS 25 33 CILIS CBL CH CHLH G CI CE CB2 CR129 CB1294 CR1295 CH Warch 20 Wan 30 Total Average Avenge Standard Aveng Standard Average Standard Average Standard Average Sanded Selling Price Mat Salles Der Sales Deventive Mail Sales tesis Math Sales Devil Se Devil Sales Destion A Standard 14 21 19 3 8.17 9 34 21 51 IS 114 is 212 14 $5.8 3 4 11 31 . 11 56 S 31 15 10 15 40 100 124 S445 211 1 205 45 3444 2 4 41 96 17 41 13 S 120 135 41 24 1 HO 125 ST 20 19 14 1 13 3 9.01 12 3 8 3 4 ar 5 2 15 200 . 3 12 5 16 10 15 1 5 2.15 3 5 8 15 . 12 5 192 20 ar 11 5 170 119 11 7 12 13 5 . 14 10 14 10 10 9 41 5 1 9 6 5 8 3 5 4 2 3 9 5 13 20 5 1 S 2.51 61 70 11 3 41 40 60 110 s 5 16 16 2 201 3 4 9 12 14 10 3 S 2.1 4 7 1 21 $ 241 5 9 15 10 10 14 $ 24 4 1 13 10 41 4 12 . 10 16 5 19. 1 1 2 5 IN 3 3 4 5 1 3 1 8 11 27 6 7 33 $ 4 41 11 21 0 11 19 07 15 104 14 73 14 156 CBD CBLC GLO CH CHLOE CRU C CL500 CLSO CLS 1. For the total demand, which SKU has the highest variation in demand, and which has the lowest? What are the sales rank and product category for ? these SKUs? [2 points) 2. For the two SKUs identified below. a. For a 95% service rate, what is the total safety stock inventory for each SKU under the decentralized warehouse structure? (4 points) b. For a 95% service rate, what is the safety stock inventory for each SKU under a centralized warehouse structure? [4 points) Compared to the decentralized structure, what is the percent reduction in safety stock for each SKU with the centralized structure? (2 points) ] For all SKUS: a What is the total inventory cost savings (cycle stock and safety stock) associated with a centralized warehouse compared to the decentralized warehouses? Assume the cost of inventory is 75% of the sales price. [4 points) 2. ABC Warehouse 70 73 13 206 41 350 17 IN 24 37 37 157 "iss's Dais | EXHIBIT 4: CABLE SKUS AT DISTRIBUTOR : Average Inventory w Ware Average SKU Rank SKU Case Warehouse Warehouse Warehouse Warehouse Selling Price Category Ouantity 10 20 CRIISO) s 6. H S 100 37 COLISI S R17 A S 30 101 100 141 73 12.02 25 IVA 41 17 15 CBL 153 5.88 D 50 235 OS CBL154 $ 62 A CE 272 275 200 CBLISS s 4.45 B S 80 53 CILING C HO 6 86 36 41 CB 157 S 6. A 40 309 134 14 350 CRLIS S 6.60 A S SO 17 46 17 CRI 5 2.61 2 20) 11 IN CBL 200 $ 3.30 Y C 120 12 12 9 24 C'BL201 2.60 Y 120 CBL275 s 2.15 B S 00 298 03 258 37 CUL 6.00 A 200 302 524 157 ( CR1292 $ 10 00 15 25 39 16 37 31 CRI20 5 2 B ( 150 16 COL24 91.4 S 12 10 10 7 B CBL 295 134.92 S 17 2 0 CBL 206 B 121 37 CULO S A RO 105 54 106 HL8401 2.61 HO 11 CBL 302 2.61 SO 21 CB1303 26 - ( xo CR 104 5 2.61 c RO 7 15 S 2.61 HO 23 CRIM 261 RO 7 70 73 CBL307 S 3.01 C C 60 15 20 IS CAL $ 112 20 21 12 11 CELSO s 125.59 1 10 4 CB 5401 12S 2 5 3 CRI 5 1.15 150 10 11 CHLOE S (LX) A 00 175 141 CRI 602 2.39 A 200 280 383 Rank A-high demand: B- medium demand: C-low demand: Y-discontinued SKU Category: C - commodity item: S-hard-to-find. Average inventory levele provided in number of units. Source Company files 120 31 20 7 0 12 106 200 400 X 10 73 IR 11 11 33 SKU SB 2 CILIS CHISI CILIS C153 CLISH CRISS 25 33 CILIS CBL CH CHLH G CI CE CB2 CR129 CB1294 CR1295 CH Warch 20 Wan 30 Total Average Avenge Standard Aveng Standard Average Standard Average Standard Average Sanded Selling Price Mat Salles Der Sales Deventive Mail Sales tesis Math Sales Devil Se Devil Sales Destion A Standard 14 21 19 3 8.17 9 34 21 51 IS 114 is 212 14 $5.8 3 4 11 31 . 11 56 S 31 15 10 15 40 100 124 S445 211 1 205 45 3444 2 4 41 96 17 41 13 S 120 135 41 24 1 HO 125 ST 20 19 14 1 13 3 9.01 12 3 8 3 4 ar 5 2 15 200 . 3 12 5 16 10 15 1 5 2.15 3 5 8 15 . 12 5 192 20 ar 11 5 170 119 11 7 12 13 5 . 14 10 14 10 10 9 41 5 1 9 6 5 8 3 5 4 2 3 9 5 13 20 5 1 S 2.51 61 70 11 3 41 40 60 110 s 5 16 16 2 201 3 4 9 12 14 10 3 S 2.1 4 7 1 21 $ 241 5 9 15 10 10 14 $ 24 4 1 13 10 41 4 12 . 10 16 5 19. 1 1 2 5 IN 3 3 4 5 1 3 1 8 11 27 6 7 33 $ 4 41 11 21 0 11 19 07 15 104 14 73 14 156 CBD CBLC GLO CH CHLOE CRU C CL500 CLSO CLS