Question
A product is planned by a buyer planner at a cost of .05 /unit. The order has 1,000-items and is placed through and on-line catalogue
A product is planned by a buyer planner at a cost of .05 /unit. The order has 1,000-items and is placed through and on-line catalogue with a transaction fee of $10/order. Inventory is stored in the RDC for 30-days between replenishment cycles. The replenishment quantity at the RDC is 30,000 items. Quantities of 10-items are picked and packed in a box and then shipped from RDC to different locations. The handling fee in the RDC for picking, packing and shipping is $15/box. The box is shipped via UPS at a cost of $20. The product is on the UPS truck for 3-days. You receive the box and stock the items on the shelves in your store. The receiving and stocking activity costs .05/unit. The 10-items in the box are on the shelf for 10-days and sold to different customers at varying points in time. Inventory carrying cost for the supply chain is 25-percent annually.
- Which inventory storage points have a demand profile of Full Lot?
- Write the formula to calculate the value of inventory for Full Lot.
- Which inventory storage points have a demand profile of Gradual Depletion?
- Write the formula to calculate the value of inventory for Gradual Depletion
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