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all answers please!! A company sells product A and manages its inventory on a weekly basis, that is, at the start of every week, the
all answers please!!
A company sells product A and manages its inventory on a weekly basis, that is, at the start of every week, the inventory manager does the following things in the following order as we assumed in class: count on-handlon-order inventory, backorder lost sales, inventory level position, etc. places an order for replenishment (if necessary), accepts delivery of orders placed in the past (if there are any). satisfies backorders (if there are any), opens the store to let customers come throughout the week and purchase the products, Product Ais a non-perishable product, which can be stored forever without losing its value. Being very valuable, product A is very expensive to store: the company incurs a holding cost of $150 per unit of product A that is still in stock at the end of each week. Failure to meet demand results in lost sales but there is no loss of goodwill. The weekly demand for product A has a normal distribution with mean 55 and standard deviation 10. The company places order with the supplier on a weekly basis and it takes exactly 2 weeks between when an order is placed and when it is received. The selling price for product A is $1000 and purchasing cost $750. a) (5pt) Complete the following table using the min-max policy with ROP = 110 and S = 155. (You may enter the answer directly in the table provided in the response box). Product A W1 W2 W3 W4 W5 Inventory level 0 On hand Inventory Backorders Lost sales 0 On order inventory Inventory position Order quantity Orders received 100 0 Demand 64 47 44 65 56 Sales b) (2pt) Suppose you were the inventory manager at this company, Determine an order-up-to policy for inventory replenishment. Carefully explain how you designed this ordering rule 7 A BI E E# % S8 PA W1 W2 W3 W4 W5 a) Product A Inventory level On hand inventory Backorders 0 Lost sales On order inventory - Inventory position Maximum file size: 250MB, maximum number of files: 1Step by Step Solution
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