Question: a ) Over the past 5 weeks, demand for wine at Winston s Winery has been 4 2 0 0 , 3 3 0 0

a) Over the past 5 weeks, demand for wine at Winstons Winery has been 4200,3300,1700,2900, and 800 bottles. Winston has placed weekly orders for glass bottles of 3000,5000,1500,3100, and 500 units.
I. What is the variance of demand for Winstons Winery?
II. What is the variance of orders from Winstons Winery for glass bottles?
III. What is the bullwhip measure for glass bottles for Winstons Winery?
IV. Is Winstons Winery providing an amplifying or smoothing effect?
b)Century Outlet has total end-of-year assets of $20 million. The first-of-the-year inventory was $900,000, with a year-end inventory of $1,100,000.The annual revenue was $25 million and the annual cost of goods sold was $15 million. The owner wants to evaluate his supply chain performance. Pease calculate the following SC performance measures:
I. Gross Margin Percentage =
II. Average Inventory Investment =
III. Percentage of Assets invested in inventory =
IV. Inventory turnover =
V. Weeks of supply =
c) The fixed costs for operating our plant at locations A, B, and C, D are $1600, $2300, $2,500, and $6,000 per day respectively. The variable costs are $8, $9, $5, and $3 per unit respectively. Find the range of production level where each location is optimal.
d) We are trying to lease a warehouse for the next four years. Option 1 is to pay a non-refundable deposit of $40,000 now and then $3,100 per month at the end of each month for the next four years. Another option is to pay one month rent of $3,900 at the beginning of each month for the next four years and a security deposit of $3,600 now which will be returned at the end of the lease period. Find the present value of each option using an interest rate of 7% per year.

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