As an industrial engineering consultant you have been hired by a car dealership to determine an inventory control policy for one particular car model, the Cardinal XJ7. The owner of the dealership has decided he wants the probability of a stockout to be no higher than 0.07. You have collected data as to the monthly demand for the Cardinal XJ7 as well as the length of time (in weeks) it takes the car manufacturer to deliver cars to the dealership once an order has been placed (remember 1 year = 12 months = 50 weeks = 250 days). It costs $3500 dollars to place an order for Cardinal XJ7 cars and the dealership estimates it costs $500 to keep one car on the lot for one month. You need to formulate an (RS) inventory control policy for the dealership using the monthly demand data and the length of lead time data provided below. When should an order be placed? When an order is placed, how much should be ordered? 9 52 62 70 45 55 Monthly Demand 68 51 37 52 49 5262 56 4655 55 36 63 40 67 33 42 704540 36 49 45 61 52 54 54 30 54 55 605647 73 65 49 57 64 60 52 61 70 55 47 51 54 52 34 75 5 1 56 51 4449 5558 73 49 74 49 50 6038 61 63484363 6045 63 5242 57 67 56 43 54 681 61 4961495760514667 57 65 40675463576850565656 3.1 4.2 4.6 4 Length of Lead Time (in weeks) 4.2 3.5 4.2 4.6 - 4.4 4.3 3.8 4.9 4.4 4.4 3.6 15 4 3.8 5.4 3.6 3.9 4.6 3.2. 2.9 5.6 3.2 3.1 5 5.6 4 3.1 5.3 5.4 2.8 3.6 4.2 4.3 3.5 5.1 As an industrial engineering consultant you have been hired by a car dealership to determine an inventory control policy for one particular car model, the Cardinal XJ7. The owner of the dealership has decided he wants the probability of a stockout to be no higher than 0.07. You have collected data as to the monthly demand for the Cardinal XJ7 as well as the length of time (in weeks) it takes the car manufacturer to deliver cars to the dealership once an order has been placed (remember 1 year = 12 months = 50 weeks = 250 days). It costs $3500 dollars to place an order for Cardinal XJ7 cars and the dealership estimates it costs $500 to keep one car on the lot for one month. You need to formulate an (RS) inventory control policy for the dealership using the monthly demand data and the length of lead time data provided below. When should an order be placed? When an order is placed, how much should be ordered? 9 52 62 70 45 55 Monthly Demand 68 51 37 52 49 5262 56 4655 55 36 63 40 67 33 42 704540 36 49 45 61 52 54 54 30 54 55 605647 73 65 49 57 64 60 52 61 70 55 47 51 54 52 34 75 5 1 56 51 4449 5558 73 49 74 49 50 6038 61 63484363 6045 63 5242 57 67 56 43 54 681 61 4961495760514667 57 65 40675463576850565656 3.1 4.2 4.6 4 Length of Lead Time (in weeks) 4.2 3.5 4.2 4.6 - 4.4 4.3 3.8 4.9 4.4 4.4 3.6 15 4 3.8 5.4 3.6 3.9 4.6 3.2. 2.9 5.6 3.2 3.1 5 5.6 4 3.1 5.3 5.4 2.8 3.6 4.2 4.3 3.5 5.1
