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The demand for spring water at the SLC Costco is 600 liters per week. The setup cost for placing an order to replenish inventory is $25. The order is delivered by the supplier which charges Costco $0.10/liter for the cost of transportation from the Rocky Mountains to SLC. This transportation cost increases the cost of water to $1.25/liter. The water loses its freshness while stored at the SLC Costco. To account for this, the Costco charges an annual holding cost of $2.6/liter. Assume that there are 52 weeks a year.
Q11) Determine Costco’s Economic Order Quantity (in liters) and How often should Costco order for water (in weeks) when Costco orders its economic order quantity computed in Q11 each time it places an order?
Use the notes feature to incorporate any relevant material not included on the slides. Ensure correct spelling, grammar, and professional vocabulary.
The final exam should count twice as much as the midterm exam, the semester average should be rounded up to the nearest whole number, and the semester grade should be assigned by the folowing criteria
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Elucidate how does this performance compare to practical worst case. Illustrate what would happen to throughput of line if we increased capacity at a non-bottleneck station also held WIP constant at its current level.
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What are the known unknowns and the unknown unknowns of the project. How does the Project Manager neutralize these risks
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