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

How innovation and strategy can be channeled

Incorporate appropriate animations, transitions, and graphics as well as "speaker notes" for each slide. The speaker notes may be comprised of brief paragraphs or bulleted l

Business proposal for management

The goal is to share a "Business proposal for management" how your company chosen and displayed in the "Excel Course Project" can address management and leadership actions w

Ceo of walker construction has an opportunity to bid

1. George Hank, CEO of Walker Construction has an opportunity to bid on a contract that pays $5500upon completion, but the contract calls for a late performance penalty of $14

Examples of service quality gaps-customer perception info

1. Based on Madeline's Day 1 observations and conversation with Mr. Spencer, provide examples of the service quality gaps (e.g., knowledge, standards, delivery, communicati

Create a strengths and weaknesses analysis for the company

Based on your research, and after reading the unit lesson, create a strengths, weaknesses, opportunities, and threats (SWOT) analysis for the company you chose to research f

Work design-communication-organizational structure

Organizational behavior - OB is defined as a study of individual behavior and group dynamics in the organization. b. Organization variables that affect human behavior are -

Steps an organisation would take to establish a pmo

1.Examine the steps an organisation would take to establish a PMO or PO if it did not previously have one. Explain which of these steps would be the most difficult for the org

Pros and cons of the mean and the median

1.Investigate the comparative pros and cons of the mean and the median. Find examples where the mean is more appropriate than the median and vice-versa. Discuss the locations


Write a Review

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