Question: PLEASE ANSWER THE BONUS QUESTION ASAP Interplanetary Supply Chain Management The Earthlings opened three settlements on planet Mars so far: Mars Head Quarter (MHQ), Psi,


Interplanetary Supply Chain Management The Earthlings opened three settlements on planet Mars so far: Mars Head Quarter (MHQ), Psi, and Omega. Arnold Schwarzenegger cannot recall how to activate the alien machine that creates a breathable atmosphere on Mars. Therefore, the United Nations Space Agency (UNSA) is sending out a space transporter every 4 weeks from Earth to Mars. Before each space transporter leaves Earth, MHQ has to decide how much oxygen (and other things) to order. The travel time from Earth to Mars is 6 months ( =26 weeks). Assume 52 weeks in a year. MHQ places each order for all three settlements on Mars together. MHQ also serves as a distribution center on Mars, which means that Psi and Omega receive their oxygen from MHQ (Psi and Omega use the fixed order-quantity model to order from MHQ). The lead times from MHQ to Psi and Omega are two weeks and three weeks, respectively. Each cubic meter (m3 ) oxygen costs 10 space dollars (currency symbol: ) and carrying costs are MHQ places each order for all three settlements on Mars together. MHQ also serves as a distribution center on Mars, which means that Psi and Omega receive their oxygen from MHQ (Psi and Omega use the fixed order-quantity model to order from MHQ). The lead times from MHQ to Psi and Omega are two weeks and three weeks, respectively. Each cubic meter (m3 ) oxygen costs 10 space dollars (currency symbol: ) and carrying costs are 26% of the purchase cost per year. RSM 270H1S - Final Exam Page 5 of 12 At all extraterrestrial settlements of Earthlings, the required service probability of oxygen is 99.99%, so z=3.72. Psi's weekly demand is 100m3 with a standard deviation of 30m3. A computer-based system is managing the inventory, and orders to MHQ are placed automatically. The order setup cost is only (4 points (bonus)) Consider the average pipeline inventory that you just calculated in part h) of Question 5 to be a part of the current inventory level of MHQ. So, MHQ calculates its current inventory position as average pipeline inventory + current MHQ storage inventory (including MHQ safety stock). [If you did not solve Q5 h), use an assumed value of the average pipeline inventory.] Consider one review cycle. Day 1: Assume that the arriving transporter has been unloaded, orders from Psi and Omega have been fulfilled, and a new order to the UNSA has been placed, who promptly sent out the next transporter from Earth. Although the order to Earth has already been placed, Colin Farrell, the manager of MHQ double checks the amount of oxygen once more and measures a total volume of 6000m3 in the MHQ storage (not including the pipeline inventory). Day 29: The demand on Mars during the past review period was exactly the expected 4-week demand. Orders from Psi and Omega have been fulfilled - assume here they ordered exactly what they need for four weeks on average. The nearest space transporter has not yet arrived but it is already in the Mars orbit. MHQ has to place its next order to Earth. What is the order quantity
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