Activity Warehouse Reorganization Project Plan Immediate Optimistic Most Likely Predecessors) (Weeks) (Weeks) 4 8 12 7 MALOE Pessimistic (Weeks) 10 18 16 12 20 4 A B, C EF D, G, H 12 3 Steel City Inventory Information Uncertain (see probability Annual Demand for Widgets distribution below) Ordering Cost 45 Annual Inventory Holding Rate % 20 Cost per unit 65 Working Days/Year 275 Lead Time (days) Probability Distribution for Steeler Jersey Annual Demand Annual Demand probability 70,000 0.1 75,000 0.2 80,000 0.4 85000 90,000 0.1 95000 0.05 0.15 (1) Organize their warehouse project. They want to visualize the project map, and better understand the timeline of the project. In particular, the owner is very concerned about the finish date of the project and wants to know the probability the project will be completed in less than 65 weeks (assuming project finish times follow a normal distribution). Be sure to document ALL STEPS needed to reach this probability calculation. (2) Conduct a simulation of the Economic Order Quantity based on uncertain annual demand for the product. The ordering cost, Holding Rate, Cost/Unit, Working Days/Year, and Lead Time...but annual demand varies based on economic conditions and how well the team is performing. The probabilities associated with various annual demand quantities are given in the table above. With respect to the simulation, the owner has asked for the following: a. Simulate at least 50 values for the Economic Order Quantity b. Present summary statistics for the simulation. What is the average Economic Order Quantity? What is the high value? The low value? The standard deviation? C. For the average, high, and low Economic Order Quantities in part b) calculate the reorder point. d. Based on your simulation and what you know about the assumptions needed to make the Economic Order Quantity Model valid, is this a good inventory model to use? Explain why or why not. Activity Warehouse Reorganization Project Plan Immediate Optimistic Most Likely Predecessors) (Weeks) (Weeks) 4 8 12 7 MALOE Pessimistic (Weeks) 10 18 16 12 20 4 A B, C EF D, G, H 12 3 Steel City Inventory Information Uncertain (see probability Annual Demand for Widgets distribution below) Ordering Cost 45 Annual Inventory Holding Rate % 20 Cost per unit 65 Working Days/Year 275 Lead Time (days) Probability Distribution for Steeler Jersey Annual Demand Annual Demand probability 70,000 0.1 75,000 0.2 80,000 0.4 85000 90,000 0.1 95000 0.05 0.15 (1) Organize their warehouse project. They want to visualize the project map, and better understand the timeline of the project. In particular, the owner is very concerned about the finish date of the project and wants to know the probability the project will be completed in less than 65 weeks (assuming project finish times follow a normal distribution). Be sure to document ALL STEPS needed to reach this probability calculation. (2) Conduct a simulation of the Economic Order Quantity based on uncertain annual demand for the product. The ordering cost, Holding Rate, Cost/Unit, Working Days/Year, and Lead Time...but annual demand varies based on economic conditions and how well the team is performing. The probabilities associated with various annual demand quantities are given in the table above. With respect to the simulation, the owner has asked for the following: a. Simulate at least 50 values for the Economic Order Quantity b. Present summary statistics for the simulation. What is the average Economic Order Quantity? What is the high value? The low value? The standard deviation? C. For the average, high, and low Economic Order Quantities in part b) calculate the reorder point. d. Based on your simulation and what you know about the assumptions needed to make the Economic Order Quantity Model valid, is this a good inventory model to use? Explain why or why not