Note: You need to type your assignments in pdf or word files and submit them on Canvas on time. Late assignments will not be accepted and will be graded with ZERO points unless allowed by the instructor in advance for the university-approved excuse. Students who will miss class on the day that an assignment is due because of a planned valid excuse can submit their assignments on Canvas before the due date. Students should SHOW THEIR CALCULATION PROCESS to receive full credit for each calculation question. A correct final answer (a number only) without any calculation process will only gain 20% of the credits for each calculation question. Showing the calculation process will also allow the instructor to give students partial credits even if the final answer is wrong.

Q1. (5pt) You are a newsvendor selling the San Pedro Times every morning. Before you get to work, you go to the printer and buy the days paper for $0.25 a copy. You sell a copy of the San Pedro Times for $1. Daily demand is distributed normally with mean=250 and standard deviation=50. At the end of each morning, any leftover copies are worthless, and they go to a recycle bin.

a. How many copies of the San Pedro Times should you buy each morning? b. Based on part a), what is the probability that you will run out of stock? Q2. (8pt) A manufacturing firm uses 4000 toggle switches per year. Currently the firm purchases 800 toggle switches and pays $0.9 per switch. The supplier has just announced the following discount scheme. The manufacturing firm incurs a cost of $30 for each time it submits an order and assigns an annual holding cost of 40 percent of the purchase price per unit. Discount scheme: Range Unit Price 1 to 499 $0.9 500 to 999 $0.85 1000 or more $0.80 Determine the order size that will minimize the total cost. Q3. (8pt) Cass Clothes sells dress shirts and reviews its stock level at the beginning of every week. The shirts cost $120 each and it takes 3 weeks to receive a shipment. The cost of processing an order and receiving new goods amounts to $80. Weekly demand is approximately normally distributed with a mean of 30 dress shirts and a standard deviation of 16. Cass Clothes uses 40% of item costs to compute annual holding costs. Note: The probability and corresponding z value for a standard normal distribution as given by the NORMINV function of MS-Excel is tabulated below:

a. What is the safety stock Cass Clothes should hold if they want to maintain a service level of 95%? b. What is the annual holding cost for this safety stock? c. What is the percentage increase in safety stock if management increases the service level from 95% to 99%? Q4. (8pt) A restaurant uses an average of 50 jars of a special sauce each week. The cost of the jar is $75. Inventory related costs are as follows: Inventory carrying rate is 30 %, and ordering costs are $ 200. An examination of restaurant records suggests that weekly demand is approximately normal and has a standard deviation of 3 jars per week. Lead time is two weeks, and the manager wants a stock-out risk that does not exceed 10 percent. Assume a year consists of 52 working weeks. a. Determine the EOQ. b. Determine the ROP. c. How much safety stock should be carried? d. What service level would a reorder point of 110 jars provide? e. What service level would a reorder point of 100 jars provide?

Q5. (8pt) Develop an A-B-C classification for the following items by using 70%-90% rule: for the last item of Class A, the cumulative % of Total $ usage should be just over 70%; for the last item of Class B, the cumulative % of Total $ usage should be just over 90%.

Q6. (8pt) Compare and contrast the fixed quantity version of EOQ with the fixed interval version. In which situations would each be used?

Q7. (7pt) Why has the JIT approach to inventory control become popular in some industries? How does the JIT approach compare to the EOQ approach to inventory management? Should JIT be adopted by all inventory managers? Why or why not?

Q8. (8pt) Explain the essential characteristics of MRP, DRP, and VMI. How do they operate with each other to provide a systematic approach to managing supply chain inventories?

Q9. (8pt) Discuss the role of distribution in the supply chain. Provide examples of how distribution operations can positively and negatively impact supply chain performance. Q10. (6pt) Compare and contrast the four primary functions of a DC: accumulation, sortation, allocation, and assortment. Q11. (8pt) Considering network design issues in distribution, discuss the primary cost tradeoffs that must be evaluated with other functional areas when determine the number of facilities needed. Q12. (14pt) What are the primary capabilities, advantages, and disadvantages of each of the basic transportation modes? Q13. (4pt) Identify and discuss appropriate modes of transportation for the following items: Apple (a) iPhones, (b) Under Armour running shoes, (c) organic fruits and vegetables, and (d) pressure treated lumber.

PLEASE ANSWER ALL THE QUESTIONS WITH EXPLANATION THANK YOU!!!!

\begin{tabular}{|c|c|c|c|c|c|} \hline probability & z value & probability & z value & probability & z value \\ \hline 0.99 & 2.326 & 0.89 & 1.227 & 0.79 & 0.806 \\ \hline 0.98 & 2.054 & 0.88 & 1.175 & 0.78 & 0.772 \\ \hline 0.97 & 1.881 & 0.87 & 1.126 & 0.77 & 0.739 \\ \hline 0.96 & 1.751 & 0.86 & 1.080 & 0.76 & 0.706 \\ \hline 0.95 & 1.645 & 0.85 & 1.036 & 0.75 & 0.674 \\ \hline 0.94 & 1.555 & 0.84 & 0.994 & 0.74 & 0.643 \\ \hline 0.93 & 1.476 & 0.83 & 0.954 & 0.73 & 0.613 \\ \hline 0.92 & 1.405 & 0.82 & 0.915 & 0.72 & 0.583 \\ \hline 0.91 & 1.341 & 0.81 & 0.878 & 0.71 & 0.553 \\ \hline 0.90 & 1.282 & 0.80 & 0.842 & 0.70 & 0.524 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline Item # & Unit Cost & Annual Demand \\ \hline A1 & $1.40 & 50 \\ \hline B2 & $0.25 & 100 \\ \hline C3 & $2.00 & 200 \\ \hline D4 & $16.00 & 20 \\ \hline E5 & $0.10 & 400 \\ \hline F6 & $0.06 & 250 \\ \hline G7 & $0.20 & 50 \\ \hline H8 & $1.20 & 100 \\ \hline \end{tabular}