Question: If you answer using excel please show entire sheet. Showing C3*E3 is pointless if we can't see what numbers they're referencing Toyota has decided to
If you answer using excel please show entire sheet. Showing C3*E3 is pointless if we can't see what numbers they're referencing
Toyota has decided to set up regional warehouses where some variants of the Scion will be customized and shipped to dealers on demand. Customizing and shipping on demand will raise production and transportation costs per car by $100. Each vehicle costs $30,000, and Toyota has an annual holding cost of 20 percent. Toyota has owned cars at the dealer for the first 90 days. Thus, for all practical purposes, Toyota holds all inventory at the dealers or the regional warehouses. Consider a region with three large dealers and twenty-five small dealers. Toyota has partitioned the variants into two groups-popular variants and uncommon variants. Weekly demand for the two types of variants at the two kinds of dealers is shown in Table. The goal is to provide a 95 percent cycle service level using a continuous review policy. Replenishment lead times for both dealers and regional warehouses are four weeks. Customization and shipping from a regional warehouse to a dealer can be done in a day, and this time can be ignored. Assume demand to be independent across all dealers. Table: Weekly Demand at Car Dealers (1) How much is the safety inventory of a popular variant required at a large or small dealer? (2) What is the safety inventory required if Toyota's popular variant (for both large and small dealers) is centralized at the regional warehouse? (3) What is the safety inventory required if the popular variant at small dealers is centralized at the regional warehouse but that for large dealers is decentralized? (4) Given the additional customization and transportation cost, which structure do you recommend for the popular variant
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