Three trials for the company stock control system were calculated as shown in the table below....

  

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Three trials for the company stock control system were calculated as shown in the table below. The holding cost, shortage cost and ordering costs have been estimated to be $220, $80 and $170. The company has a high competition therefore they need to keep their customer and attract more new customers. Strategy 1 Strategy 2 Strategy 3 Reorder Quantity 520 600 300 Reorder Level 200 400 300 Lead Time 1 Number of days when stock out is occurred 10 5 20 Number of days when holding is occurred 9 20 6 Number of holding units 900 1650 560 Mean of closing cost 305 754 -104.5 Number of orders placed 5 10 20 Number of Back orders 750 250 1200 Based on the given information, answer the following questions: 1- Which model has been used? 2- Calculate the total cost under each trial 3- Which of the following inventory strategy is the best? Explain your answer 4- If the company has 200 units in the stock, production is 300 units and demand estimated to be 350 units, what will be the profit of the company in this day following strategy 1? (Price is $200 and production cost is $90). 5- Based on Q4, if the demand is estimated to be 400, Reordered quantity is 200 units and the manager wants to reach profit of $33000, what should be the Reorder Level? Three trials for the company stock control system were calculated as shown in the table below. The holding cost, shortage cost and ordering costs have been estimated to be $220, $80 and $170. The company has a high competition therefore they need to keep their customer and attract more new customers. Strategy 1 Strategy 2 Strategy 3 Reorder Quantity 520 600 300 Reorder Level 200 400 300 Lead Time 1 Number of days when stock out is occurred 10 5 20 Number of days when holding is occurred 9 20 6 Number of holding units 900 1650 560 Mean of closing cost 305 754 -104.5 Number of orders placed 5 10 20 Number of Back orders 750 250 1200 Based on the given information, answer the following questions: 1- Which model has been used? 2- Calculate the total cost under each trial 3- Which of the following inventory strategy is the best? Explain your answer 4- If the company has 200 units in the stock, production is 300 units and demand estimated to be 350 units, what will be the profit of the company in this day following strategy 1? (Price is $200 and production cost is $90). 5- Based on Q4, if the demand is estimated to be 400, Reordered quantity is 200 units and the manager wants to reach profit of $33000, what should be the Reorder Level?

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