set 4 The Miami Bread Company bakes bread five days a week, 6:00am - 3:00pm. Regardless of small changes in their product mix (whole wheat, oatmeal, etc.), they always use 12,000 pounds of white wheat flour per week. The flour is delivered by King Arthur Flour Company in 100-pound bags. King Arthur charges a delivery fee of $300, regardless of how many bags are ordered. Miami Bread's accountant estimates that it cost $0.80 to store one bag for a week (capital, utilities, etc.). Consider this initial scenario for the first four questions (Q1-Q4) of the homework. QUESTION 1 1. How many bags of flour should Miami bread order at a time? Based on your result, how often is flour delivered? Please show your calculations. QUESTION 2 1. Does your caclulation above (q1) change if King Arthur offers volume discount for flour? Yes No QUESTION 3 1. Does your caclulation above (q1) change if the lead time for every order decreases by one day? Yes No 1. QUESTION 4 If the amount that Miami Bread pays for utilities (heating, cooling, dehumidification of inventory) increases, the number of bags in every order will: Uncertain Decrease Stay the same Increase 10 points QUESTION 5 1. Denton Job Shop buys two parts (Tedwigs and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tedwigs are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every three weeks. Data for both products are as follows: Annual Demand Holding cost (% of item cost) Set up or order cost Lead time Safety stock Item cost Tedwig 10,000 20% Widget 5,000 20% $150 4 weeks 55 units $10 $25 1 week 5 units $2 a) What is the inventory control system for Tedwigs? That is, what is the reorder quantity and what is the reorder point? b) What is the inventory control system for Widgets? c) On average, how much is Denton Job Shop paying annually in holding costs and ordering costs for these supplies? d) A distributor has offered to supply both parts at the same item cost but with a significant reduction in order cost. However, Denton must coordinate the replenishment of these supplies to obtain savings on the delivery. Denton must place an order for both parts every two months to benefit from a total order cost of 140 (for delivery of both Tedwigs and Widgets). Should Denton Job Shop switch order to this new distributor? Please show all calculations supporting your