Question: = YOUR STUDENT NUMBER ( e . g . , S 0 1 2 3 4 5 1 2 3 4 5 ) = SUM
YOUR STUDENT NUMBER eg S SUM OF DIGITS OF YOUR STUDENT NUMBER eg SD&B a major hardware brand, works with a manufacturer in Taiwan for a particular model of its power tools Model S for sale in Europe through their distribution center DC near Munich, Germany. Due to the variety of power outlets across different regions in Europe, Model S is produced in variants with different power plugs and transported using air freight from Taiwan. Air freight charges $ per item shipped and delivers in week regularly, thanks to fixed schedules.The Taiwanese manufacturer operates with a maketoorder approach, charging $ per production order plus $ per item, and requiring a week lead time to prepare each order. Assume that D&B takes ownership of the orders as soon as they leave the manufacturer's facility.Weekly demand for each variant has the following independent and Normal distributions round up to integer:Variant Variant Variant Variant Meantimes times times times Standard DeviationFor each variant, D&B uses a periodic review policy with weeks between orders and incurs a holding cost. Throughout, assume a CSL of zCSL and weeks in a year. Calculate the safety stock and the OUL to be used for each variant. Under the current strategy, what is D&Bs total annual cost of Model S including all variants?D&B management is considering a postponement strategy where the produce design would be changed to make the power plug connector modular so that only the base unit without the power plug can be sourced from the Taiwanese manufacturer and the power plug can be assembled at D&Bs own processing facility near Hamburg, Germany. Proximity of this facility to an established seaport will also enable D&B to use ocean shipping from Taiwan instead of air freight Ocean shipping would cost only $ per item but have a lead time of weeks on average with a week standard deviation.The final assembly operation and additional transportation from the Hamburg facility to the DC in total would cost $ per item, but the manufacturers price would be negotiated down to $ For the base unit inventories, D&B would use a continuous review policy and estimates a holding cost rate of Assume that D&B will be able to negotiate to take ownership of these items only on delivery. Calculate the safety stock, the ROP and the optimal order quantity to be used for the base unit. Under the postponement strategy, what is D&Bs total annual cost of Model S Does it make sense to implement this idea?
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