Question: Need Help, Was only able to figured out the bolded ones. You are the company's Supply Chain Manager -- solve the below questions to ensure
Need Help, Was only able to figured out the bolded ones.
| You are the company's Supply Chain Manager -- solve the below questions to ensure an optimal ordering policy. | |||||
| Annual requirements (R) = | 14,000 | units | |||
| Order cost (S) = | $120.00 | per order | |||
| Holding rate (k) = | 28% | annual rate | Holding Cost/unit/year | ||
| Unit cost (C) = | $36.24 | per unit | |||
| Lead time (LT) = | 3 | weeks | |||
| Number of weeks per year = | 52 | weeks | 120 | Standard deviation | |
| Part I | |||||
| Compute the following: | |||||
| Note: You must include formulas within these YELLOW cells for full credit -- do NOT simply type in answers. Add additional cells if necessary, but label each clearly! | |||||
| a) EOQ = | 575.44 | units | |||
| EOQ (rounded to nearest whole item) | 575 | units | |||
| b) average time between orders = | 2.1 | weeks | |||
| c) safety stock for 95% cycle-service level | units | ||||
| reorder point for 95% cycle-service level | units | ||||
| d) annual holding cost = | 2917.32 | per year | |||
| annual ordering cost= | 2921.74 | per year | |||
| e) On hand inventory of 1300 units and a withdrawal of 95 units. Reorder? How many units? | (note: standard deviation of weekly demand=120 units) | ||||
| f) number of orders placed per year = | 24.3 | orders | |||
| Part II | |||||
| a) calculate the P(same as TBR) that gives approximately the same number of orders/year as EOQ. Round answer to nearest week. | |||||
| Safety Stock | Target Inv. Level | ||||
| b) Find the safety stock and the target inventory level that provides a 95 percent cycle-service level. | |||||
| c) How much larger is the safety stock than with a Q system? | |||||
| Part III | |||||
| Explain the difference between continous and periodic review systems of inventory management as if you were discussing with someone unfamiliar with supply chain management. Use an example in your answer. | |||||
| Q | Annual Holding Cost | Annual Ordering Cost | Total Cost | ||
| 50 | |||||
| 75 | |||||
| 100 | |||||
| 125 | |||||
| 150 | |||||
| 175 | |||||
| 200 | |||||
| 225 | |||||
| 250 |
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