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A distribution company A, made JITD strategic alliance with a wholesaler B. The content of alliance is, Company A executes work for company Bs inventory
A distribution company A, made JITD strategic alliance with a wholesaler B. The content of alliance is, Company A executes work for company Bs inventory management and all the inventory cost caused from B is responsible on A. The decision for inventory replenishment is made on every Saturday, An order quantity is arrived every Sunday night after the delivery-process from A to B. The amount of starting inventory is 60 at Week 0 Inventory holding cost: 2,000 won/week per unit When the shortage is incurred, it is considered as Lost-sale, not as Backorder. Lost-sale cost : 2,000 won/week per unit. Inventory replenishment happens when the inventory level is under 20(not including 20th), and the amount of inventory to be refilled is calculated as "60-current inventory level". 7 20 , "60 -" . Transportation cost: 50,000 won per every delivery to be supplied from a manufacturer. If the total number of satisfied demands - the total number of Lost-sales is greater than 180(not including 180th), the incentive, 20,000 won per extra unit is given to A. - Lostsale " 180 , 2 A . Following table shows weekly demand of 'B' company for last 8 weeks. Please answer the questions and fill the blanks based on the information given above. All the cost is calculated from week 1(not from week 0). 4 Total Week 35 25 30 20 25 30 45 245 Weekly demands Satisfied demands Inventory level at the end of Week 60 Holding cost Shortage cost The amount of Inventory to be replenished Transportation cost (1) How much inventory does company A replenish for the first time? (2) How many times does company A replenish inventory for 8 weeks? (3) How many times does company B experience inventory shortage for 8 weeks? A How many demands of company B were met for 8 weeks among 245? (9 Company A would experience (More profit or Loss of profit), and the difference between the total expense and the total incentive would be won. [Note: Total expense of company A = holding cost+ shortage cost+ transportation cost. If the total expense is lower than the total incentive would receive, we consider More profi". Otherwise we consider it as "Loss of profit"] company 35
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