Question: Please determine the best inventory model based on 2 years sales data, select the shipping method (full container vs half container) and calculate annual operating

Please determine the best inventory model based on 2 years sales data, select the shipping method (full container vs half container) and calculate annual operating cost.

Annual revenue around $600,000

1. Estimated Shipping cost, Co = $3300 (full container) Co = $2100 (half container) Lead time for Full Container is 13 weeks Lead time for Half Container is 15 weeks. Inventory holding cost, Cc = 18% of the product price Product Price = $90 Assume Service level = 95% The aggregated quantity of products needs to be ordered for the business.

Week Aggregated Sales Data Weekly in Units
1 236
2 235
3 136
4 129
5 173
6 212
7 185
8 180
9 133
10 144
11 132
12 112
13 97
14 191
15 179
16 76
17 121
18 50
19 154
20 209
21 139
22 750
23 116
24 75
25 249
26 159
27 154
28 96
29 112
30 125
31 237
32 149
33 188
34 136
35 100
36 117
37 172
38 180
39 142
40 141
41 69
42 204
43 78
44 213
45 227
46 179
47 72
48 154
49 146
50 72
51 85
52 218
53 123
54 199
55 56
56 240
57 112
58 126
59 235
60 106
61 139
62 170
63 217
64 169
65 93
66 94
67 60
68 22
69 162
70 102
71 191
72 90
73 91
74 77
75 68
76 69
77 71
78 60
79 65
80 59
81 71
82 21
83 104
84 100
85 105
86 70
87 75
88 68
89 100
90 122
91 100
92 98
93 50
94 100
95 102
96 96
97 87
98 82
99 53
100 96
101 105
102 88
103 241

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