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
The data is given at the top and the question is
The data is given at the top and the question is
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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