A B C D E F G H J K L M Selecting Transportation Mode: for China Imports m 3 Desired cycle service level 98% 4 Holding cast 25% 5 6 Transportation Options 7 Air freight Ocean shipping Given in the problem 8 Shipping cost/kg. S 10 Shipping cost/container 9 Minimum shipping quantity kg.) 50 Container size (kg) '3 Mean lead time (weeks) 1 Mean lead time (weeks) I ' SD of lead time (weeks) 0.2 SD of lead time (weeks) '2 '3 Product Characteristics '4 Smartphunes Decorative hardware Given in the problem '5 Mean weekly demand 1,000 Mean weekly demand '6 SD of weekly demand 400 SD of weekly demand '7 Weight/ unit kg.) 0.1 Weight] unit (kg) '8 Cost;' unit S 300 Cost;' unit '9 23 Total Costs for Smartphunes 2' Airfreight Ocean Shipping 22 Optimal batch size 833 1290 Review example 1171 for economic order quantity on page 271. Don't forget that there are 52 weeks in the year! 23 Order quantity per batch ' 24 Cycle inventory Batch size/'2 25 Safety inventory ' Review example 12-7 for the safety stock formula on page 327. 26 Transit inventory Mean weekly demand \" Mean lead time 27 Total inventory Add together the inventory costs 29. Annual holding cost A function of your total inventory, your costfunit and the holding cost 96 29 Annual shipping cost A function of the cost/container or kg divided by the optimal batch size x weekly demand x 52 weeks a year 33 Total Costs Add the two costs together! Chinalmrws + 5 4 19 20 Total Costs for Smartphones 21 Air freight Ocean Shipping 22 Optimal batch size 833 1,290 Review example 11-1 for economic order quantity on page 271. Don't forget that there are 52 weeks in the year! 23 Order quantity per batch 24 Cycle inventory Batch size/2 25 Safety inventory Review example 12-7 for the safety stock formula on page 327. 26 Transit inventory Mean weekly demand * Mean lead time 27 Total inventory Add together the inventory costs 28 Annual holding cost A function of your total inventory, your cost/unit and the holding cost % 29 Annual shipping cost A function of the cost/container or kg divided by the optimal batch size x weekly demand x 52 weeks a year 30 Total Costs Add the two costs together! 31 32 Total Cost for Decorative Hardware 33 34 Optimal batch size Review example 11-1 for economic order quantity on page 271. Don't forget that there are 52 weeks in the year! 35 Order quantity per batch 36 Cycle inventory Batch size/2 37 Safety inventory Review example 12-7 for the safety stock formula on page 327. 38 Transit inventory Mean weekly demand * Mean lead time 39 Total inventory Add together the inventory costs 40 Annual holding cost A function of your total inventory, your cost/unit and the holding cost % 41 Annual shipping cost A function of the cost/container or kg divided by the optimal batch size x weekly demand x 52 weeks a year 42 Total Costs Add the two costs together! 43 Chinalmports + Ready Accessibility: Good to go + 110%