H$.$W$.$ #$2$

Integrated Logistics Management $-3$rd Tri $2023-2024$

Instructions: Use the last page of this packet as the answer sheet for this assignment. Attach your work to the answer sheet.

You are to work in your assigned groups, make only one submission per group, but make sure all group members' names appear on the submission.

Use the following information about a fictional retail store to answer questions $1-3$

Average sales of $25$ cartons per day.

Purchase price per carton is $$15\mathrm{.}50$

Transportation cost per carton is $$2\mathrm{.}50$

Average order cycle time is $10$ days

Inventory carrying costs are $20\%$

Order cycle max time: $15$ days

There are $360$ days in a year for the purposes of this question

What cost savings can the retailer expect to reap with a three$-$day reduction in order cycle variability, given the information above?

What cost savings can the retailer expect to reap with a three$-$day reduction in order cycle time $($assuming the base case order cycle variability$)?$

If it costs the retailer $$9$ every time he places an order, what is his yearly ordering costs given the information above.

What is the total cost per year for order cost and carrying cost for this item, given the following data?

$\backslash$table$[[$Number of orders per year,$8],[$Average Inventory $($units$),6,000],[$Order Cost,$$80$