Problem 2-30 Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation Thomas's fastest moving inventory item has a demand of 6,000 units per year. The cost of each unit is $16 (additional 5% discount applies if at lease 150 units ordered a time), and the Inventory carrying cost is $3 per unit per year. The average ordering cost is $10 per order. It takes about 3 working days for an order to arrive. (This is a corporate operation, and there are 300 working days per year.) Answer the following questions, Q.106. Note that you must include Excel formulas/calculations showing how you arrive at the answer 3 Q1: Assume that the demand is stable throughout the year. What is the ROPY Note that stockouts and unnecessary lewentory holding should be 10 avoided at any times 11 102 Assume that the demand is stable throughout the year. Based on the model to minimize the costs of purchasing ordering and inventory holding for the year, how many units should be ordered each time an order is placed? Hounded to an integer if calculation resulta decimal number 15 16 17 anos: Folowing Q2, what is the total cost of purchating ordering and inventory holding expecetd for the year? 19 30 21 22 8 04: The management recently obtained the sample data see below) of the demands during 60 different reorder periods (a reorder period = 3 working 34 days. The management consider the above demands closely follow a normal distribution whose mean and standard deviation can be estimated by using 25 the average and standard deviation of the sample data using the ROP calculated in Q1, what is the service level to be accomplished during a reorder berid Demand during 59 75 30 11 4 OS: To achieve a minumum O service level during a reorder period, what is the minimum safety stock to be added to the NOP calculated in 17 if the ROP calculated in Q1 ready able to achieve a service level of 0 or higher, just wwwero. Should be an integer TO 25 14 32 38 58 60 30 Of with your safety Mock in added, the service level is enhanced. The tradeoff is the expected dditional invertory holding for Icow. What is this additional inventory holding cost ected to be for the year 1 31 TI 18 TI 65 4 Problem 1A Problem 15 Problem Problem Problem 4 OS: To achieve a minumum 90% service level during a reorder period, what is the minimum safe calculated in 128 the ROP calculated in QI is already able to achieve a service level of 90% orn 1 2 1 Demand unit during the oder period 59 57 48 48 70 75 58 58 60 76 58 57 71 38 50 5 7 Q6: With your safety stock in 5 added, the service level is enhanced. The tradeoff in the expecte carrying cost. What is this additional inventory holding cost expected to be for the year? 1 2 13 65 45 56 17 38 52 53 67 9 so 51 52 53 54 55 56 57 55 ONS BOOSOBOUSSOS 54 45 69 42 46 49 so 61 62 63 64 65 66 56 44 52 72 65 70 71 72 57 67 53 57 52 se 63 65 43 49 SO 3 74 75 7 0 50 56 ES 8:39 51 Problem 1A Problem 1B Problem 2 Problem 3 Problem 2-30 Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation Thomas's fastest moving inventory item has a demand of 6,000 units per year. The cost of each unit is $16 (additional 5% discount applies if at lease 150 units ordered a time), and the Inventory carrying cost is $3 per unit per year. The average ordering cost is $10 per order. It takes about 3 working days for an order to arrive. (This is a corporate operation, and there are 300 working days per year.) Answer the following questions, Q.106. Note that you must include Excel formulas/calculations showing how you arrive at the answer 3 Q1: Assume that the demand is stable throughout the year. What is the ROPY Note that stockouts and unnecessary lewentory holding should be 10 avoided at any times 11 102 Assume that the demand is stable throughout the year. Based on the model to minimize the costs of purchasing ordering and inventory holding for the year, how many units should be ordered each time an order is placed? Hounded to an integer if calculation resulta decimal number 15 16 17 anos: Folowing Q2, what is the total cost of purchating ordering and inventory holding expecetd for the year? 19 30 21 22 8 04: The management recently obtained the sample data see below) of the demands during 60 different reorder periods (a reorder period = 3 working 34 days. The management consider the above demands closely follow a normal distribution whose mean and standard deviation can be estimated by using 25 the average and standard deviation of the sample data using the ROP calculated in Q1, what is the service level to be accomplished during a reorder berid Demand during 59 75 30 11 4 OS: To achieve a minumum O service level during a reorder period, what is the minimum safety stock to be added to the NOP calculated in 17 if the ROP calculated in Q1 ready able to achieve a service level of 0 or higher, just wwwero. Should be an integer TO 25 14 32 38 58 60 30 Of with your safety Mock in added, the service level is enhanced. The tradeoff is the expected dditional invertory holding for Icow. What is this additional inventory holding cost ected to be for the year 1 31 TI 18 TI 65 4 Problem 1A Problem 15 Problem Problem Problem 4 OS: To achieve a minumum 90% service level during a reorder period, what is the minimum safe calculated in 128 the ROP calculated in QI is already able to achieve a service level of 90% orn 1 2 1 Demand unit during the oder period 59 57 48 48 70 75 58 58 60 76 58 57 71 38 50 5 7 Q6: With your safety stock in 5 added, the service level is enhanced. The tradeoff in the expecte carrying cost. What is this additional inventory holding cost expected to be for the year? 1 2 13 65 45 56 17 38 52 53 67 9 so 51 52 53 54 55 56 57 55 ONS BOOSOBOUSSOS 54 45 69 42 46 49 so 61 62 63 64 65 66 56 44 52 72 65 70 71 72 57 67 53 57 52 se 63 65 43 49 SO 3 74 75 7 0 50 56 ES 8:39 51 Problem 1A Problem 1B Problem 2 Problem 3