Fliboard

$-$ Fliboard is a startup company that develops self$-$balancing scooters $($hoverboards$)$ and sells online

$-52$ weeks a year

$-$ Fliboard currently sells two products, Proboard $($P$1)$ and Babyboard $($P$2)$

$-$ Weekly demand $($independent$)$

$-$ Proboard $($P$1)$ : $30$ units per week with standard deviation of $15$ units per week

$-$ Babyboard $($P$2)$: $20$ units per week with standard deviation of $10$ units per week

$-$ Price

$-$ Proboard : $\backslash$$$400$

$-$ Babyboard: $\backslash$$$300$

$-$ Costs of battery

$-$ Proboard : $\backslash (\backslash$$ $150\backslash )$ Samsung $42$V Li$-$ion battery $($B$1)$

$-$ Babyboard: $\backslash$$$100$ HoverFixer $36$V Li$-$ion battery $($B$2)$

$-$ Cost of material other than battery

$-$ Proboard :$\backslash$$$150$

$-$ Babyboard: $\backslash$$$100$ Fliboard

$-$ Fliboard uses continuous review policy

$-$ Lot size is calculated using economic order quantity $($EOQ$)$

$-$ Batteries are supplied independently from each supplier

$-$ Cycle service level $($CSL$)$

$-$ Samsung battery : $0\mathrm{.}99$

$-$ HoverFixer battery: $0\mathrm{.}99$

$-$ Replenishment lead time

$-$ Samsung battery : $4$ weeks

$-$ HoverFixer battery: $4$ weeks

$-$ Fixed order cost

$-$ Samsung battery : $\backslash$$$1,000$ per order

$-$ HoverFixer battery: $\backslash$$$1,000$ per order

$-$ Inventory holding cost of battery

$-$ Samsung battery : $\backslash$$$60$

$-$ HoverFixer battery: $\backslash$$$40$ Question $1$

$-$ Calculate following values for replenishing battery $-(1-1)$ Lot size $($Q$)$

$-$ For Samsung battery

$-$ For HoverFixer battery

$-(1-2)$ Safety inventory $($ss$)$

$-$ For Samsung battery

$-$ For HoverFixer battery

$-(1-3)$ Annual ordering cost $($AOC$)$

$-$ For Samsung battery

$-$ For HoverFixer battery

$-(1-4)$ Annual holding cost $($AHC$)$

$-$ For Samsung battery

$-$ For HoverFixer battery

$-(1-5)$ Annual material cost including battery $($AMC$)$

$-$ For Proboard

$-$ For Babyboard Question $1$

$-$ Calculate total profit of the current operation $($two hoverboards$)$

$-$ Assume annual ordering cost and holding cost of all components except batteries are negligible

$-$ Thus, we only need to consider costs AOC, AHC, and AMC in $(1-3),(1-4)$ and $(1-5)$ for calculating profit

$-(1-6)$ Total profit

$-$ Profit $=$ Revenue $-$ Total Cost

$-$ Where total cost is sum of:

$-$ Annual material cost

$-$ Annual ordering cost

$-$ Annual holding cost