Question: The data is given at the top and the question is on below TQ Alpha Corp. (a) is a company producing lawn mower. Beta Corp.
The data is given at the top and the question is on below TQ
Alpha Corp. (a) is a company producing lawn mower. Beta Corp. (b) is a company producing motor for the lawn mower. Recently b is in negotiation with a for the supply of motor for the year 2023. After the negotiation, b realise that there is a great need for it to forecast a's future demand for the year 2023. Therefore, b uses a 's quarterly demand over the past four years (2019-2022) to forecast a 's future demand for the year 2023. Table 1 show a 's quarterly demand over the past four years (2019-2022). D 1 Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 2 3 4 5 Q1: 464 Q2: 509 Q3: 534 Q4: 541 A 3 4 5 1 Year 2 6 7 8 9 528 2. Forecasted demand for four quarters of 2023 using trend regression line and seasonal variation factors through moving average technique. 2:00: 10 12 13 14 15 16 17 12 2019 2020 17 2021 2022 7 Standard 34 T 25 ANOVA Pe 03 1 SUMMARY OUT 1 1 1 2 2 2 3 3 3 3 4 Mul Square Adre ervations 4 4 4 465 422 485 517 Regression Tatto C Quarter Period . 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 0.37577 476757 4 476 501 542 550 4 11 35 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 595 540 571 466 C D G Q1 Flag 02 Flag Q3 Flag Q4 Flag 1 0 0 ol 1 o 0 0 1 0 0 0 1 D 581 599 492 0 0 0 R 11 MS 1530525 XTM6.3125 LAPO 24745 2254.13 775 0 1 0 0 0 1 0 0 1 0 0 0 1 0 0 . Poda 0 20 1 0 0 0 1 0 0 1 O D 0 1 0 Spfeme 4 34.49547278-1.330005686735363902574 O 0 0 1 0 0 0 1 0 0 o H Sales 1 0 0 0 1 465 476 595 581 501 540 599 485 542 571 492 conderd ver ra 356.75 25.50063817 15.49504 26579425 GET -0.375 343 2004 2004 200 517 550 466 Copper 175 Caer RSS DERAS 5.3940255 456 4579424 40 40 4 SUNNY LEO$29 3 Year A 3 6 7 # 9 10 11 12 13 14 15 16 17 18 19 20 21 3 4 1 Year 1 4 2 8 5 10 A 11 12 11 14 15 16 D7 18 19 30 21 A 1 1 E 2 H 31 3 11 . D Quarter Periods Flag 3 al 4 4 4 4 al 3 3 1 3 al 1 31 a E 2 al 3 31 30 4 4 4 4 2 1 21 3 S E 30 4 3 2 $ C E 2 3 4 31 (21 2 4 3 2 3 4 D 2 3 D al 2 3 4 2 E 4 3 al 3 4 1 2 3 3 al CI T 4 S 6 7 C El 30 11 12 11 34 11 16 15 26 19 20 20 E C 3 d 31 B P 30 11 12 11 24 15 16 17 11 E Of of of 25 20 1 of of 0 4 of d of 1 0 of of 1 of of of of 0 of 1 of d of 1 0 of of 3 of L C E # G W Quarter Period 21 Flag 02 Flag 03 Flag Flag Sales 0 of Flag al of of of 0 31 D o D E o C 0 AL 0 0 D 1 DC D 0 B C of 1 D o D 4 C C al 1 o of 0 # C . O Flag gefag Sales e 01 3 0 cl 6 30 e d OF 11 d C o 1 of d 9 E 4 o of T # E d C 4 A C of s El d 4 4 El a d 9 C #1 4 of of E 0 of of E 0 0 0 E of 0 of E 0 C O 5 0 d d of of d 5 0 of C 1 of d of 465 AN 393 381 422 501 340 333 423 RESULTA 542 371 452 404 476 595 433 540 599 415 542 $72 432 Predicted Sales SIT 358 466 328 464 50 534 341 Predicted Sales 404 501 334 QUESTION: a is planning a budget to purchase the motors from b in 2023. Currently a is purchasing the motors quarterly. But, now they have decided to apply EOQ model instead of purchasing quarterly. Assume that a is now experiencing regular demand from the customer, the ordering cost is RM50 per order, the unit cost is RM320 per motor, and annual holding cost are 20% of the unit cost. a also has 250 working days per year and a lead time of 5 days. Based on the result from Q2) identify the following aspects of the inventory policy for the motors: Economic order quantity (EOQ) b) Reorder point c) Cycle time d) Total annual inventory cost e) If a want to choose between quarterly and EOQ, which purchasing practice would you recommend to it. Justify your selection

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