Case-2: Medical Computing Solutions, Inc. Please answer the below question perfectly..

Medical Computing Solutions, Inc. (MCS) designs and manufactures medical grade all-in-one computer systems developed specifically for application in healthcare environment. Medical grade computer systems are developed to meet standard requirements, such as IEC 6060, as well as others that make them a better fit than the consumer grade computers for medical applications, i.e. ruggedized, easily cleanable for infection control, etc

MCS customers include hospitals, clinics, private practices, laboratories, etc. MCS portfolio offers several standard computer platforms the customers can choose from, as well as highly customized solutions that are tailored to specific customer specifications. One of MCS standard platforms is the Base-Care Platform (BCP), which has been popular with small and medium size clinics and private practices. While BCP sales have been growing, there are a number of competing platforms that are available from competitors.

MCS products are sold through a channel-partner firm (sales-rep) that also offers other brands of medical all-in-one systems. The sales-rep receives the order from MCS distribution center within 3 days after notifying it, provided that the stock is available. Since competition is fierce, backorder is not a viable option for BCP. In such cases, MCS simply loses that amount of business.

Below are some key data for BCP:

BCP retail price is $1800 per unit

BCP cost per unit is $600

BCP manufacturing + ship cycle time (lead time) is approximately 1 month

MCS incurs ordering costs of $70 each time an order is placed for BCP.

Monthly inventory carrying costs for BCP are $10 per unit MCS wants to maintain a 97% service level with its BCP customers

Assume we are now approaching the end of this year. A demand forecast for BCP in the upcoming year has been prepared - see below table - and will be used to make an inventory plan for BCP.

A. Choose an appropriate inventory model to recommend managing inventories for next year. Specifically, articulate what model you have chosen and why it is an appropriate model to use in this case. Show details of your work, i.e. describe the model/approach and show the equations, if any, that you use.

B. Determine the reorder point (ROP).

C. Determine the Total Annual Inventory costs. Show details of your work, i.e. describe the approach and show the equations, if any, that you use.

Need answer for three parts.. Thanks.

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total BCP Demand (units) for the Upcoming Year 3000 5000 4000 7000 12000 8000 7000 5000 4000 3000 5000 6000 69000