Question: Please provide the methodolofy to solve. The flow structure is : from material supplier to Zamsung FLash drive manufacturing and then FG inventory at Zamsung

Please provide the methodolofy to solve. The flow structure is : from material supplier to Zamsung FLash drive manufacturing and then FG inventory at Zamsung after 6 days. Then it goes to Zenovo Manufacturing and then to Retailers
(c) Inventory level of Flash drive Finished Goods (FG) at Zamsung is reviewed at an
interval of once per week (week =7 days). Immediately after each review, a quantity
is ordered by the Zamsung Inventory controller to raise the total of in-hand and on-
order inventory of Flash drives in FG to be 434 units (i.e. Base-stock is 434). When
Inventory controller places an order to the Zamsung plant, it delivers the requested
quantity of XRiE Flash drive units to the FG after 6 days. Assume the daily demand
for XRiE Flash drive is stable and normally distributed with a mean of 31 units and
standard deviation is 4.5. Assume both the Zamsung plant and the Zenovo plant work
24 hours per day, 7 days per week throughout the year. (Normal distribution tables can
be found in appendix 1 of this paper)
(1) Compute the service level in terms of the coverage probability (Type 1 service
level) provided to Zenovo using the inventory control policy described above.
(4 marks)
(ii) Compute the average number of stock-outs at the FG inventory per year,
assuming 52 weeks of operation per year.
(4 marks)
(iii) Compute the average inventory level of the XR.1E Flash drive units in FG
inventory under this policy.
(1 mark)
(iv) Zamsung decided to continuously review the inventory of XRiE Flash drive
units in the FG and use continuous review Q-R inventory policy with
Economic Order Quantity (EOQ) as the Q value. Assume the daily demand
and standard deviation of demand remain as specified in this question and both
the Zamsung and the Zenovo work 24 hours per day, 7 days per week
throughout the year.
The order cost (including transport) is $20 per order placed and holding cost
per year is $45.26 per unit. What will be their order quantity based on their
revised Q-R policy?
(1 mark)
(v) Zamsung manufacturing wanted to provide a coverage probability (Type 1
gervice level) of 99.5% for XRiE Flash Drives. At what level of inventory in
FG should they place a new order in each cycle to provide such customer
service?
(4 marks)
(vi) Given that approximate order cycle in days is determined by Q(units)?()
(units/day), how many stock-outs might they expect per year under this revised
policy?
(4 marks)
Note: Question 1 continues on page 3.
(vii) What will be the average inventory level of XRiE Zamsung Flash Drives at
FG inventory with this revised inventory control system?
(2 marks)
(viii) If the XRiE Flash drive is a high-end product, which policy would you
recommend and why? Use your computed measures in the earlier sections of
each policy to justify your answer.
(2 marks)
 Please provide the methodolofy to solve. The flow structure is :

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