Cycle-stock and Safety-stock models:

Revisit the ImportHome.com case study, assume the costs of the GM soymilk maker and GM cooker are $35 per unit. The annual inventory carrying cost is 18% of the product cost. Please answer the following questions:

ImportHome.com case: B2C company; imports kitchenware from China and sell them to the worldwide market by internet stores. They have mainly three product lines: soymilk makers, automatic preasure cooker and frying pan. Regular price of products is around $100 to $150. The shipping cost is less than 10%. Very low return rate (about 1/300 to 1/500) The purchase cost is around $30 to $40 per unit. The company is targeting the Chinese community in the US and Canada.

The lead time of an order of a full container is around 90 days on average: (30 days in production lead time and 60 days in transportation lead time). Tariff is 4% of product value.

Ordering options: full container (1,400 units of soymilk maker), or half container. Full container cost $3000 for ocean transportation and $300 for truck delivery. Half container $2,000 for ocean freight and $300 for transportation.

It can be out of stock with a chance of 5% to 10% item wise. customer expects next day shipping. if out stock, it offers customers a discount to keep the customer waiting.

For the US Market the shipping cost is around $10 per item; $20 for Canada. via Fedex.

Fedex will pay $85 plus refund the shipping fee for mal-handling items. It sells essentially two items , one to customers and one to Fedex. On average it receives $1000 to $2000 a month for shipping damages.

it shares a portionn of revenue $15 to 20% with the webstores upon each sales made through them. Jack does not pay for product advertising.

It receives 15 orders per day across al product lines.

1. For GM soymilk maker, calculate the annual shipping and inventory carrying costs under either full or half container. Which is better: full vs. half container?

2. For GM cooker, calculate the annual shipping and inventory carrying costs under either full or half container. Which is better: full vs. half container?

Please look at the case data below for the demand data of these products:

Month	JY Soy	GM Soy	GM Cooker	Price JY Soy	Price GM Soy	Price GM Cooker	week
1	41	32	48	99.99	88.88	149.99	1
1	80	23	38	99.99	88.88	159.99	2
1	97	13	25	88.99	88.88	159.99	3
1	104	12	23	88.99	88.88	159.99	4
1	123	15	25	88.99	88.88	159.99	5
2	40	24	21	99.99	88.88	159.99	6
2	39	35	33	99.99	78.88	159.99	7
2	28	38	31	99.99	78.88	159.99	8
2	34	45	39	99.99	78.88	159.99	9
3	33	43	40	99.99	78.88	159.99	10
3	66	32	29	95.99	88.88	159.99	11
3	79	21	22	95.99	88.88	159.99	12
3	35	26	29	95.99	88.88	159.99	13
4	20	33	35	99.99	88.88	159.99	14
4	25	21	27	99.99	88.88	159.99	15
4	40	24	29	99.99	88.88	159.99	16
4	32	29	30	99.99	88.88	159.99	17
4	41	33	35	99.99	85.88	159.99	18
5	13	32	36	99.99	85.88	159.99	19
5	20	37	43	99.99	85.88	159.99	20
5	14	42	49	99.99	85.88	159.99	21
5	39	22	31	99.99	88.88	159.99	22
6	16	23	29	99.99	88.88	159.99	23
6	53	12	22	95.99	88.88	159.99	24
6	36	14	28	95.99	88.88	159.99	25
6	35	12	31	95.99	88.88	159.99	26
7	43	13	26	95.99	88.88	159.99	27
7	18	23	34	99.99	88.88	159.99	28
7	31	27	37	99.99	88.88	159.99	29
7	22	21	32	99.99	88.88	159.99	30
7	48	25	34	99.99	88.88	159.99	31
8	55	29	53	95.99	88.88	149.99	32
8	51	26	48	95.99	88.88	149.99	33
8	64	31	55	95.99	88.88	149.99	34
8	73	34	59	95.99	88.88	149.99	35
9	34	16	23	99.99	88.88	159.99	36
9	35	21	25	99.99	88.88	159.99	37
9	41	24	29	99.99	88.88	159.99	38
9	21	17	29	99.99	88.88	159.99	39
9	55	21	25	95.99	88.88	159.99	40
10	47	28	29	95.99	85.88	159.99	41
10	38	29	36	95.99	85.88	159.99	42
10	35	25	39	95.99	85.88	159.99	43
10	22	32	42	99.99	85.88	159.99	44
11	36	23	36	99.99	88.88	159.99	45
11	48	12	28	89.99	88.88	159.99	46
11	54	16	39	89.99	88.88	159.99	47
11	53	32	45	89.99	80.88	159.99	48
12	56	28	42	89.99	80.88	159.99	49
12	64	27	49	89.99	80.88	159.99	50
12	66	29	52	89.99	80.88	159.99	51
12	87	24	51	89.99	80.88	159.99	52
12	98	21	49	89.99	80.88	159.99	53