8 weeks of Data for two warehouses in W.Pa and E. Pa. 99% service level assured....

 

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8 weeks of Data for two warehouses in W.Pa and E. Pa. 99% service level assured. Lead time = 2 weeks. Product A E.Pa 20,14,32,45,18,22,25,29 W.Pa 24,40,13,45,33,23,18,25 Product B - E.Pa 66,45,32,18,55,43,56,32 W.Pa 16,65,45,32,28,40,15,40 Ordering cost==$45/order; Holding=$0.50/unit/week Transportation cost-$2/product from the two warehouses and $3 from the centralized warehouse. In-bound transportation cost-$2/product. If centralized, in-bound = $1.50/product 8 weeks of Data for two warehouses in W.Pa and E. Pa. 99% service level assured. Lead time = 2 weeks. Product A E.Pa 20,14,32,45,18,22,25,29 W.Pa 24,40,13,45,33,23,18,25 Product B - E.Pa 66,45,32,18,55,43,56,32 W.Pa 16,65,45,32,28,40,15,40 Ordering cost==$45/order; Holding=$0.50/unit/week Transportation cost-$2/product from the two warehouses and $3 from the centralized warehouse. In-bound transportation cost-$2/product. If centralized, in-bound = $1.50/product

Answer rating: 100% (QA)

To calculate the optimal inventory policy for Product A and Product B in the warehouses in WPa and EPa we can use the Economic Order Quantity EOQ model The EOQ model helps determine the order quantity ... View the full answer