Due by Sunday $($Day $7),11$:$59$ pm CT

Case Study:

Surf Shaper, a surf warehouse in California, serves over $300$ surf shops and retailers along the California coast. Surf Shaper places their boards in surf shops on consignment and replaces the consignment stock from their warehouse as boards are sold, typically within $3$ days. It is important that inventory be carefully managed. If the retail surf shops run out of Surf Shaper : boards before the consignment inventory is replaced, sales may be lost as customers choose other boards. Surf Shaper may also lose their "shelf space" within the retailer's shop if their supply chain proves unreliable. For this reason, Surf Shaper strives to maintain a $96\%$ service level with their retailers.

The best$-$selling board for Surf Shaper is the Grommet, their $8-$foot foam wide board, that is suitable for beginning and casual surfers. The Grommet retails for $$400$ and COGS is $$150$ per unit. The popularity of the Grommet has been steadily increasing over the past $3$ years. The unit sales report for the past three years is displayed below.

$\backslash$table$[[$Month$,2018,2019,2020],[$January$,790,853,929],[$February$,800,864,944],[$March$,1,300,1,404,1,544],[$April$,1,560,1,685,1,943],[$May$,1,620,1,750,2,469],[$June$,1,970,2,128,2,584]]$

The Grommet is manufactu freight. With the costs of co inicurs an expenditure of $$9$ inventory carrying cost is $15$

$\backslash$table$[[$Month$,2018,2019,2020],[$January$,790,853,929],[$February$,800,864,944],[$March$,1,300,1,404,1,544],[$April$,1,560,1,685,1,943],[$May$,1,620,1,750,2,469],[$June$,1,970,2,128,2,584],[$July$,2,140,2,311,2,539],[$August$,2,230,2,408,2,541],[$September$,1,560,1,685,2,426],[$October$,1,280,1,382,1,573],[$November$,1,070,1,156,1,271],[$December$,940,1,015,976],[$Total$,17,260,18,641,21,740]]$

The Grommet is manufactured in Thailand Orders take $30$ days to arrive via sea freight. With the costs of communications, customs, and freight, each order placed incurs an expenditure of $$935.$ Once the boards arrive at the warehouse, the inventory carrying cost is $15\%$ per year$/$per unit of the COGS.