Question: Please answer these 3 questions for me please using the chart in the middle. i apologize its in the wrong order thank you Cc: Onion



Cc: Onion Teain From: Bob Subject: Onion Cola Hi Onion Cola Team! Thave some updates for you since we launched Garlic Soda We divided the US into 10 regions and have been selling directly to the custorner. These direct sales have really increased demand. Ali product imventories are maintained locally in each territory and replenished from Oshkosh every five weeks using UPS The average replenishment lead time using UPS is one week. UPS charges at a rate of 50.75+0.33x where x is the quantity shipped in pound . Onion Cola products weleh 0.2 pounds and cost $350 each. Garlic Soda products weigh 0.10 pounds and cost $35 each. Weekly demand for Onion Cola products in each territory is normally distributed, with a mean of mH - 3 and a standard deviation of sH = 6. Weekly demand for Garlic Soda products in each territory is normally distributed, with a mean of mL=25 and a standard deviation of si=6. Outrageous Soda maintains sufficient safety inventories in each territory to provide a CSL of 0.975 for each product. Annual holding cost at Outrageous Soda is 30 percent. In addition to the current approach, we're considering two other options: Option A: Keep the current structure but replenish inventory once a week rather than once every five weeks. Option B: Eliminate inventories in the territories, aggregate all inventories in a finished goods warchouse at Oshhosh, and replenish the warchouse once a week If inventories are aggregated at Oshkosh, orders will be shipped using FedEx, which charges 57.25 + 0.77x per shipment, where x is the quantity shipped in pounds. The factory requires a one-week lead time to replenish finished-goods imventories at the Oshkosh warehouse. An average customer order is for 1 unit of Onion Cola and 10 units of Garlic Soda Can your team help us evaluate these options? What is the total annual cost of the current system? 575,994 542. 598 590.459 Paster & Format Painer What's the total annual cost for Option A? $42,598$75,994$90,459$47,335 What's the total annual cost for Option B? $90,549 $42,598 $47,335 $75,994
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
