Question: Question 2 ( 1 0 points ) . Before the Springfield Motors factory in Springfield began manufacturing the Homer, they were shipped in from Ogdenville.
Question 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 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 cells. The cost for a single cells materials is $ with an associated carrying cost of per year. When placing an order for battery cells from Ogdenville, the cost is estimated at $ which is the delivery fee of the RSM Winter Case Study monorail. Yes delivery by monorail is that expensive have you ever had delivery by monorail before? Didnt think so Now, unlike question 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 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 days of them thus making a year consist of days. Springfield Motors aims for a 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 daysc 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 $ to $ if at least units are ordered within a single order, and it can be even further reduced to $ if at least 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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