You are the inventory planner for the iWidget - the world's bestselling widget. The demand for the iWidget is very steady at 15,000 units per month with virtually no variability. The iWidgets are manufactured in China, assembled in Brazil, and shipped to your Dallas, Texas distribution center (DC) for delivery to the US market. The product cost, excluding transportation, of an iWidget to your DC is $125 per unit. The sales price across all of your channels averages $575 per unit. The ordering process costs $275 to place an order. All orders are shipped in containers that cost $1,250 per container, regardless of how many iWidgets are in the container as long as the number does not exceed the container capacity of 5,000 iWidgets. You also have to order in multiples of 100. Your company has an annual holding cost of 25%. Assume 52 weeks per year. Part 1 0.0/1.0 point (graded) What order quantity of iWidgets do you recommend? Round to the nearest integer value. Part 2 0.0/1.0 point (graded) Using the Q* in the solution to 1.1, what is your order cycle time, T, in days? Enter a decimal value with three significant digits. For example, if your answer is 12.509 then enter 12.5. Submit You have used 0 of 2 attempts Part 3 0.0/1.0 point (graded) What is the Total Annual Cost (in dollars)? (Hint: I am asking for the total cost, not just the relevant cost) Round to nearest integer and do not enter a dollar sign. Submit You have used 0 of 2 attempts Save Save Your manager just read a book on just-in-time inventory and wants you to order product in the quantity so that you would expect to place an order every week. What is the impact in terms of total cost for following this order policy where you place an order once every week, that is, 52 times per year? Part 4a 0.0/1.0 point (graded) What is your new Total Cost in $? Round your answer to the nearest integer and do not enter a dollar sign. Submit You have used 0 of 2 attempts Save Part 4b 0.0/1.0 point (graded) Using the solution you entered for problem 4a (please read the explanation for 4a), how much more does this new policy cost in $? Round your answer to the nearest integer and do not enter a dollar sign. Submit You have used 0 of 2 attempts Save Terms of Service Part 5 0.0/1.0 point (graded) Ignoring your manager's suggestion, you are now being approached by your transportation provider. They are recommending a new shipment option that would reduce the cost per container to $1000 per shipment. What is the new Total Annual Cost? Round your answer to the nearest integer and do not enter a dollar sign. Enter new Total Annual Cost: Submit You have used 0 of 2 attempts < Previous Next > Save All Rights Reserved