The supplier starts the eight-week period

Assignment Help Management Theories

Reference no: EM131118580

(i) For the next eight week period, a supplier will deliver orders of the same quantity every Monday morning. The customer's daily demand will be constant at 200 units over this period and there is no initial inventory. Plan what the order quantity should be such that the fill rate is 100% and the average inventory is minimized. For this and all the questions to follow, the weekly average inventory formula is = MAX(0,IF(end.inv. = 0,(beg.inv.+end.inv.)/2,(beg.inv.)2/(2×(beg.inv.+end.inv.)) (ii) Same questions as in (i), but now the supplier delivers orders every Monday and

Friday morning, and the order quantity is the same on both days for the entire period.

(iii) Orders are delivered by trucks with capacity of 1200 units. One truck delivery costs $800 irrespective of the load. Alternatively, units can be shipped by courier at a cost of $2 each. A combination of the two types of delivery is also acceptable. Average inventory comes at a cost of $3 per average unit held in storage for the entire period. The fill rate is kept at 100%. Should the customer receive deliveries on Monday, or on Monday and Friday? Should the $3 increase or decrease for the two options to become indifferent? Why?

(iv) The supplier starts the eight-week period again with an initial inventory of 200 units, and receives orders of 1350 units every Monday and Friday morning. The daily demand is still constant at 400 units. The holding and transportation costs are still identical. Units are sold to the customer's customers at $100 apiece. Compare the profits of the following two models. In the first, stockouts result in a lost sales. In the second, stockouts result in backlogs, each with a penalty cost for the customer of $10.

Can you also provide me with explanations as to how you arrive at the answers. Thank you!

Reference no: EM131118580

Questions Cloud

What are some strategies for engaging community members : What are some strategies for engaging community members? What role or roles should community members have in a community needs assessment? Justify your answer.

Find the weight lifted by the hydraulic press : Find the weight lifted by the hydraulic press when the force applied at the plunger is 400N

Develop a linear trend line for the data : Mop and Broom Manufacturing has tracked the number of units sold of their most popular mop over the past 24 months. This is shown.

Compute the resulting change in consumer surplus : Under patent protection, a firm has a monopoly in its production. Market demand is estimated to be P = 100 – .2Q. The firm’s economic costs are given by ATC = MC = $60 per unit. Determine the firm’s optimal output, price and economic profit. Compute ..

The supplier starts the eight-week period : (i) For the next eight week period, a supplier will deliver orders of the same quantity every Monday morning. The customer's daily demand will be constant at 200 units over this period and there is no initial inventory.

Determine the overall magnification of the image : Determine the overall magnification of the image.

Design and implementation schedules : Forecast revenues and expenses needed to reach goals based on design and implementation schedules created by the organization.

Justify the governmental provision of public good : To properly justify the governmental provision of a public good, it must be the case that the __________ and that __________.

What is your role as a health care team member : What is your role as a health care team member? How do you define professionalism and how does professional responsibility influence your work?

User Account

All Pages