Question: I need answer in excel sheet with formulaes. Q 1 . CAU store sells 1 , 0 0 0 jackets each month. Each jacket costs
I need answer in excel sheet with formulaes.
Q CAU store sells jackets each month. Each jacket costs the store $ and the company has an annual
holding cost of percent. The fixed cost of a replenishment order including transportation is $
a The store currently places a replenishment order every month for jackets. What is the annual
holding and ordering cost? points
b If the retail store wants to minimize ordering and holding cost, what order size do you recommend? How
much would the optimal order reduce the annual holding and ordering costs relative to the current
policy? points
Q Yoda has a large warehouse in Seoul and is deciding on a policy for inbound shipping. Three shipping policies
available for inbound shipping are LTL TL and hybrid. LTL shipping costs $ per unit. TL shipping costs $ per
truck. Hybrid shipping policy costs $ as a fixed cost per shipment along with a variable cost of $ per unit
shipped. A truck can carry up to units. Yoda incurs a fixed cost of $ for each order placed with a supplier.
Each unit costs $ and Yoda uses a holding cost of percent. Demand at Yoda is per month. points
Part A Assume that LTL shipping policy is used.
a What is the optimal order size? points
b What is the annual total cost of the optimal policy Do not include annual material cost points
Part B Assume that TL shipping policy is used.
c What is the optimal order size? points
d What is the annual total cost of the optimal policy Do not include annual material cost points
Part C Assume that hybrid shipping policy is used.
e What is the optimal order size? points
f What is the annual total cost of the optimal policy Do not include annual material cost points
Part D Comparison.
g Which shipping policy would you recommend and why? points
Q Groot purchases components from three suppliers. Components purchased from Supplier A are priced at $
each and used at the rate of units per month. Components purchased from Supplier B are priced at $ each
and are used at the rate of units per month. Components purchased from Supplier C are priced at $ each
and used at the rate of units per month. Currently, Groot purchases a separate truckload from each supplier.
As part of its JIT drive, Groot has decided to aggregate purchases from the three suppliers. The trucking company
charges a fixed cost of $ for the truck with an additional charge of $ for each stop. Thus, if Groot asks for a
pickup from only one supplier, the trucking company charges $; from two suppliers, it charges $; and from
three suppliers, it charges $ Assume a holding cost of percent per year.
a Suggest a replenishment strategy for Groot that minimizes annual cost. points
b Compare the cost of your strategy with Groots current strategy of ordering separately from each
supplier. points
Q Rocket and Gamora carry spare parts for their dealers at a thirdparty warehouse in Michigans Upper
Peninsula. Demand for Rocket spare parts is units per month, whereas demand for Gamora parts is per
month. Each spare part costs $ and both companies have a holding cost of percent.
a Currently, each company uses a separate truck to ship these parts. Each truck has a fixed cost of $
What is the optimal order size and frequency for Rocket? And for Gamora? What is the annual ordering
and holding cost for each company? points
b Dr Strange, a thirdparty logistics provider has offered to combine shipments for each of the two
companies on a single truck. This will increase the cost of each truck to $ If the two companies agree
to the joint shipment, what is the optimal order frequency and size? What is the annual ordering and
holding cost for the two companies combined? Should Rocket and Gamora accept Dr Stranges proposal?
points
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