Fliboardis a startup company that develops self-balancing scooters (hoverboards) and sells online

52 weeks a year

Fliboard currently sells two products,

Proboard(P1) and Babyboard(P2)

Weekly demand (independent)

Proboard (P1) : 30units per week with standard deviation of 15units per week

Babyboard (P2): 20units per week with standard deviation of 10units per week

Price

Proboard : $400

Babyboard: $300Costs of battery

Proboard: $150Samsung 42V Li-ion battery (B1)

Babyboard: $100HoverFixer36V Li-ion battery (B2)

Cost of material other than battery

Proboard : $150

Babyboard: $100

Fliboard uses continuous review policy

Now Fliboard orders both batteries jointly from two suppliers

Cycle service level (CSL)

Samsung battery : 0.99

HoverFixerbattery: 0.99

Replenishment lead time

Samsungbattery : 4weeks

HoverFixerbattery: 4weeksFixed order cost

Joint ordering: $1,500per order

Inventory holding cost of battery

Samsungbattery : $60

HoverFixerbattery: $40

(2-4) Annual holding cost (AHC)

For Samsung battery

For HoverFixerbattery