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E . T . Electronics team is interested to know the optimal order size of the Hirata robots. You know that the optimal order size
ET Electronics team is interested to know the optimal order size of the Hirata robots. You know that the optimal order size equals the square root of multiplied by the annual sales ie demand multiplied by the ordering cost, and divided by the carrying cost. What is the optimal order size that ET Electronics team should place by sea or by air?
he management team also sought to determine how many orders it should place. You advise the team that the order number equals the annual sales ie demand divided by the number of units per order. If ET Electronics team is expecting to order either x amount of Hirata robots by sea or y amount of Hirata robots by air, then what is the number of orders that must be placed?
ET Electronics team is also interested to know the optimal time between orders. You inform the group that they need to divide the optimal order size by the annual sales ie demand and multiply the result by to obtain the figure of their concern in days. How many days between orders should the team wait to make orders via sea or via air?
ET Electronics team members are happy with their progress, but they still need to figure out the inventory level at which they would need to place a replenishment order. You suggest that the reorder point quantity equals the demand rate multiplied by the average lead time. Using store data, you find that it takes two weeks to set up the production to make the Hirata robots. You also mention that the demand rate and the average lead time must be expressed for the same time period. Consequently, you divide the annual sales ie demand by the number of weeks in a year. What is the reorder point quantity for shipments?
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