How many of safety and cycle inventory will motorola carry

Assignment Help Operation Management
Reference no: EM13222505

Motorola obtains cell phones from its contract manufacturer located in China to serve U.S. market. The U.S. is served from a warehouse located in Memphis, Tennessee. Daily Demand at the Memphis warehouse is normally distributed with a mean of 5,000 and a standard deviation of 4,000.The warehouse aims for a CSL of 99 percent. The company is debating whether to use sea or air transportation from china. Sea transportation results lead time of 36 days and costs $0.50 per phone. The air transportation results in a lead time of 4 days and costs $1.50 per phone. Each phone costs $100 and Motorola uses a holding cost of 20 percent. Given the minimum lot sizes, Motorola would order 100,000 phones at a time (on average, once every 20 days) if using sea transport and 5,000 phones at a time (on average, daily) if using air transport. To begin with, assume that Motorola takes ownership of the inventory on delivery.

a) Assuming that Motorola follows a continuous review policy, what reorder point and safety inventory should the warehouse aim for when using sea or air transportation?

b) How many of safety and cycle inventory will Motorola carry under each policy?

c) Under a continuous review policy, do you recommend sea or air transportation if Motorola does not own the inventory while it is in transit? Does your answer change if Motorola has ownership of inventory while it is in-transit?

d) suppose, its possible to get rid of variablility in the lead-time as the deliveries are made via sea transportation. what is the most motorola would be willing to pay for this, ie the deliveries would be guaranteed to arrive within 36 days?

Reference no: EM13222505

Questions Cloud

Explain what is the predicted density of solid argon : If the volume of each unit cell in argon is 85 percent of the xenon unit cell, what is the predicted density of solid argon?
What is the relationship between a cause analysis : what decisions would be made based on that analysis. Then, explain what requirements are and how they will be used.
Define what is the half-life of a compound : What is the half-life of a compound if 80. percent of a given sample of the compound decomposes in 72 min? Assume first-order kinetics.
Which country should be concerned about the expansion : When China's clothing industry expands, the increase in world supply lowers the world price of clothing. a) Draw an appropriate diagram to analyze how this change in price affects consumer surplus.
How many of safety and cycle inventory will motorola carry : suppose, its possible to get rid of variablility in the lead-time as the deliveries are made via sea transportation. what is the most motorola would be willing to pay for this, ie the deliveries would be guaranteed to arrive within 36 days?
Oxidative phosphorylation and compute the amount of atp : Take (a.) galactose (b.) Fructose-6-phosphate through glycolysis, Pyruvate dehydrogenase complex, Citric acid cycle and oxidative phosphorylation and calculate the amount of Atp.
Which greater educational opportunities for women could lead : In developing nations, young women have lower enrollment rates in secondary school than do young men. Describe several ways in which greater educational opportunities for young women could lead to faster economic growth in these countries.
When is the best time to promote : How do your competitors do their promotions? And how does that influence your choice of promotional activity?
Implementation of a successful disaster recovery plan : Design and implementation of a successful Disaster Recovery Plan for this building, what elements of concern you need to plan for, and what new/modified internal organizational structure you recommend to take place at the time of emergency or any ..

Reviews

Write a Review

 

Operation Management Questions & Answers

  Discuss the aspects of total quality management

Discuss the aspects of Total Quality Management (TQM) and how they apply in service- and product-based businesses.

  Formulate this problem using a linear programming model

A company produces two products, A and B. Each must go through two assembly lines. Product A requires 12 hours on Line One and 4 hours on Line 2. How many of each product should the company produce to maximize profit?

  The attitudes and bargaining behaviors of the participants

Do you think the attitudes and bargaining behaviors of the participants in collective bargaining negotiations are more or less important in the final outcome than economic conditions and factors

  Estimating the break even quantity

Spartan castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction.

  Illustrate what are the annual prices of this network

If, at most, 10 consultants are to be assigned to a home office, where should the offices be setup. Explain how many consultants should be assigned to each office. Illustrate what are the annual prices of this network.

  Draw a process flow diagram of the process

Draw a process flow diagram of the process described in the case. Be sure to identify the key resources involved and the task times at each step.

  Calculate the new variable cost of product

Mop and Broom Manufacturing is evaluating whether to produce a new type of mop. The company is considering the operations requirements for the mop as well as the market potential.

  Tracing the natural history of disease

Provide an overview of this topic, tracing the natural history of disease, and including the prepathogenesis and pathogenesis periods.

  Determine the level production rate if a level strategy

Determine the level production rate if a level strategy is selected with the goal of ending Period 4 with 100 units in inventory.

  What are the management information systems core

What are the Management Information Systems core competencies of the Expedia Website?

  Explain two different forecasting techniques

An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trendequation and the naive approach.

  Question about inspirational leadership

The "inspirational leadership" style of communicating change as described by Reardon and Reardon states that a leader's communication strategy for successful change will do the following:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd