At the store of the Pokemon Center in Ginza, Tokyo, the demand for Pikachu stuffed animals is steady and equal to 28 units per hour The Pikachus sell for 1000 Yen a unit and are ordered from a manufacturer in China at a cost of 90 Yen per unit The delivery is done in batches via trucks it takes three weeks for an order to arrive after it is placed The Chinese manufacturer charges a fixed delivery cost of 18,200 Yen per order Each time an order arrives, one temporary worker is hired to unload the truck it takes him one hour to organize the unloading process, plus 1 minute per Pikachu in the order This temp worker is paid 1800 Yen per hour The Pikachus are stored in the backroom of the Pokemon Center which is leased for 1,000,000 Yen a month The insurance cost on the Pikachus which are in inventory is equal to 0 34 Yen per day per unit The cost of capital for the Pokemon Center is equal to 0 1 per week Assume the store is open 10 hours per day, 7 days a week, 4 weeks per month (a) List the values for the relevant parameters for the Economic Order Quantity (EOQ) model for managing the inventory of Pikachus, namely, the demand rate (D), the setup cost (K), the inventory holding cost (h) and the unit purchasing cost (P) (b) The Pokemon Center currently orders the Pikachus once every 5 weeks, ordering exactly the quantity needed to satisfy demand between two orders and timing the deliveries such that the Pikachus arrive just as they run out of inventory What is their total average weekly cost (setup inventory holding purchasing) Note only include the costs which are relevant to the EOQ model What is the inventory level at the moment an order is placed (c) Suppose the Pokemon Center wants to minimize their total average weekly cost, How many Pikachus should they order in each batch How often should they be placing an order What is the reorder point What is their total average weekly cost (d) Suppose the backroom of the Pokemon Center has room for at most 2000 Pikachus How does this change the number of Pikachus they should order in each batch Explain carefully

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At the store of the Pokemon Center in Ginza, Tokyo, the demand for Pikachu stuffed animals is steady and equal to 28 units per hour.

At the store of the Pokemon Center in Ginza, Tokyo, the demand for Pikachu stuffed animals is steady and equal to 28 units per hour. The Pikachus sell for 1000 Yen a unit and are ordered from a manufacturer in China at a cost of 90 Yen per unit. The delivery is done in batches via trucks; it takes three weeks for an order to arrive after it is placed. The Chinese manufacturer charges a fixed delivery cost of 18,200 Yen per order. Each time an order arrives, one temporary worker is hired to unload the truck it takes him one hour to organize the unloading process, plus 1 minute per Pikachu in the order. This temp worker is paid 1800 Yen per hour. The Pikachus are stored in the backroom of the Pokemon Center which is leased for 1,000,000 Yen a month. The insurance cost on the Pikachus which are in inventory is equal to 0.34 Yen per day per unit. The cost of capital for the Pokemon Center is equal to 0.1% per week. Assume the store is open 10 hours per day, 7 days a week, 4 weeks per month.

(a) List the values for the relevant parameters for the Economic Order Quantity (EOQ) model for managing the inventory of Pikachus, namely, the demand rate (D), the setup cost (K), the inventory holding cost (h) and the unit purchasing cost (P).
(b) The Pokemon Center currently orders the Pikachus once every 5 weeks, ordering exactly the quantity needed to satisfy demand between two orders and timing the deliveries such that the Pikachus arrive just as they run out of inventory.
1. What is their total average weekly cost (setup + inventory holding + purchasing)? Note: only include the costs which are relevant to the EOQ model.
2. What is the inventory level at the moment an order is placed?
(c) Suppose the Pokemon Center wants to minimize their total average weekly cost,
1. How many Pikachus should they order in each batch?
2. How often should they be placing an order?
3. What is the reorder point?
4. What is their total average weekly cost?
(d) Suppose the backroom of the Pokemon Center has room for at most 2000 Pikachus. How

does this change the number of Pikachus they should order in each batch? Explain carefully.