Question: raw materials used for its production. Two different types X1 and X2 of raw materials are used for the production of the final product Specifically

raw materials used for its production. Two

raw materials used for its production. Two

raw materials used for its production. Two

raw materials used for its production. Two

raw materials used for its production. Two different types X1 and X2 of raw materials are used for the production of the final product Specifically for the production of 1 unit of the final product 1 kg of X1 and 2 kgs of X2 are needed. The demand (items/week) of the final product follows the normal distribution with mean 10.000 items and standard deviation 1.000 items. The demand of the final product is lost if it is not satisfied immediately The management of the production plant has decided that the desired inventory level of the final product should be calculated in such a way in order to satisfy the average demand for T=5 weeks. The time needed to adjust the actual inventory level to its desired value is AT=4 weeks. There are new production orders only if the actual inventory level is lower than its desired value. There is a time delay that arises through a 3rd order delay function of T2=6 weeks between the time that a new production order has been created until its satisfaction. Raw materials are ordered from suppliers only if the inventory level of the raw material is lower than its order level, which is calculated using the economic order quantity. The order level for each of the two types of raw materials is calculated in a similar way with the final product's lower than its order level, which is calculated using the economic order quantity. The order level for each of the two types of raw materials is calculated in a similar way with the final product's production order. The economic order quantity of the raw materials is calculated as Q = 27C21 VIC where, Z is the production's process needs' level of the raw material type Xi (kg/week), C2 =1.500 is the order cost of the raw material type XI () and IC1,=5 /item is the contribution of the raw material type Xi to the annual holding cost of one unit of the final product. The time delay T2 between the time that there is a new raw materials order type Xi until its satisfaction follows a 3rd order delay function of T21=T22=6 weeks Requirements: (a) Using Powersim draw the stock and flow diagram of the supply chain system and form its equations, (b) Present in a figure and in a table the following behaviors. What do you observe? i. demand of final product-time ii. unsatisfied demand of final product - time ili, inventory level of final product - time iv. production orders and production rate - time v. inventory levels of raw materials - time 1 (c) How would the behavior of the system change if the time delays (T2) of the production orders and the raw material orders instead of 6 weeks take 4 weeks? What if they take 8 weeks? Please assume that the initial value of the inventory of the final product is 10000 items, the initial values of the inventories of raw materials X1 and X2 are equal to 0 and whenever you would like to calculate average values please use a time period of 6 weeks

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