Assignment #$5-$ Inventory Management

Work from both Chapters $11$ and $12$

Chapter $11$:

$3.$ The Welsh Corporation uses $13$ key components in one of its manufacturing plants. The data are provided below. Perform an ABC analysis. Explain your decisions and logic following in at least a paragraph. Use the data worksheet file under Course Content, chapter $11$ problem $3$ tab to complete. Do not use the ABC template for this problem.

SKU Item Cost Annual Demand

WC$007$ $$0\mathrm{.}90225$

WC$008$ $$1\mathrm{.}2022,500$

WC$219$ $$0\mathrm{.}1513,000$

WC$397$ $$4\mathrm{.}6512,300$

WC$419$ $$0\mathrm{.}456,500$

WC$654$ $$2\mathrm{.}10350$

WC$713$ $$9\mathrm{.}451,500$

WC$887$ $$0\mathrm{.}416,200$

WC$916$ $$3\mathrm{.}25400$

WC$971$ $$7\mathrm{.}502,950$

WC$532$ $$1\mathrm{.}324,650$

WC$413$ $$0\mathrm{.}8616,500$

WC$759$ $$8\mathrm{.}53900$

$6.$ MamaMia$$s Pizza purchases its pizza delivery boxes from a printing supplier. MamaMia$$s delivers on$-$average $225$ pizzas each month $($assume deterministic demand$).$ Boxes cost $43$ cents each, and each order costs $$12\mathrm{.}50$ to process. Because of limited storage space, the manager wants to charge inventory holding at $25$ percent of the cost. The lead time is $7$ days, and the restaurant is open $360$ days per year, assuming $30$ days per month. Determine the economic order quantity, reorder point assuming no safety stock, number of orders per year, and total annual cost. You may use the template for this problem as well as calculations.