Question: Question 2 ( 1 0 points ) . Before the Springfield Motors factory in Springfield began manufacturing the Homer, they were shipped in from Ogdenville.

Question 2(10 points). Before the Springfield Motors factory in Springfield began manufacturing the Homer, they were shipped in from Ogdenville. While the cars are now assembled locally, some key components still make their journey from Ogdenville, but with a twistthey arrive via the famed Monorail system. This innovative transport method shortens the travel time to just 3 days. Particularly, the crucial battery component, essential for the car's operation, is sourced from Ogdenville and delivered right to Springfield's doorstep by the Monorail. Each Homer requires a single battery pack, which is composed of 192 cells. The cost for a single cells materials is $6, with an associated carrying cost of 35% per year. When placing an order for battery cells from Ogdenville, the cost is estimated at $11,500, which is the delivery fee of the RSM270 Winter 2024- Case Study 22 monorail. (Yes, delivery by monorail is that expensive have you ever had delivery by monorail before? Didnt think so). Now, unlike question 1, assume that demand for the next year is somewhat uncertain. In other words, assume that the demand for Homers is thought to follow a normal distribution and that you can use the past 12 months of sales data to estimate the average and variability in demand. For the sake of simplicity, assume that each of the months has the same number of days30 of them thus making a year consist of 360 days. Springfield Motors aims for a 95% service level for their assembly plant to prevent any disruptions due to missing parts, as this would bring production to a standstill. Based on this information, please answer the questions below. (a) What is the optimal order quantity for battery cells from Ogdenville? (b) What is the approximate time between orders from Ogdenville (in days)?(c) What is the safety stock of battery cell inventory that Springfield Motors should be aiming for? (d) What is the total annual inventory cost for Springfield Motors? (Expressed as the sum of the purchasing costs, the holding costs, and the ordering costs.)(e) What is the reorder point? In other words, when the number of battery cells at Springfield Motors falls below this number, it makes a new order from Ogdenville. (f) Now, assume that the unit price of a battery cell can be decreased from its original price of $6 to $5.80 if at least 200,000 units are ordered within a single order, and it can be even further reduced to $5.65 if at least 300,000 units are ordered. This price reduction applies to all the units being purchased in a single order. Is there a new optimal order quantity? Please show all the details of your calculation.

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