Question: NEED HELP ASAP PLS (need to submit by midnight) A2) Assume the expected annual customer demand for one of its products is Up = 600

NEED HELP ASAP PLS (need to submit by midnight)

NEED HELP ASAP PLS (need to submit by midnight)

A2) Assume the expected annual customer demand for one of its products is Up = 600 units. Demand during order delivery lead-time is given 1 2 3 4 5 6 7 Leadtime Demand Probability 0.1 0.25 0.3 0.15 0.1 0.075 0.025 We further assume that we order Q = 50 units product each time and with a Reorder point is selected: ROP = 5. Question: For the given order quantity and reorder point a) What is the cycle stock? b) What is the safe stock? c) Assume unsatisfied demand from on-hand-inventory will be backordered, i. what is the total number of customer demand in units will be backordered in each ordering cycle, ii. what is the total number of customer demand in units every year? d) Assume unsatisfied demand from on-hand-inventory will be backordered, i. what is the total number of customer demand in units can be satisfied by on-line-inventory in each ordering cycle. ii. what is the total number of customer demand in units can be satisfied by on-line-inventory in each ordering year. e) Calculate i. the proportion of customer demand to be backordered, SL Loss, ii. Demand Fill Rate, SL Fill. f) Assume Carrying cost = $1/unit/year, Backlog cost = $0.5/unit, find the optimal ROP that minimizes the total cost in the sum of the annual safety and shortage

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