Flat Screen QLED Television model QLED$-$TV$56$ are manufactured and

distributed by ElGee LTD as shown in figure$1.$ ElGee Manufactures and supplies QLED$-$TV$56$ to its only customer, Kourts group of retailer from its finished goods $($FG$)$ inventory at their Distribution Center $($DC$)$ in Tuas. The daily demand from Kourts for QLED$-$TV$56$ is normally distributed with mean $75$ and standard deviation of $15.$ The FG inventory is replenished through the ElGee Final Assembly and Packaging plant which pulls semi$-$finished units from its Bulk inventory as shown in Figure $1.$ The average lead time to pull semi$-$finished unit of QLED$-$TV$56$ from its 'Bulk inventory' to $\text{'}$FG inventory' at DC through the 'final assembly' is $3$ days. Both the ElGee factory and the Kourts work $7$ days per week throughout the year. Figure $1$ Flow of $56"$ Flat Screen LCD TVs $($FS$-$TV$56)$ to the Kourts PTE Ltd$.$ Assume that you have secured a job at ElGee and assigned the responsibility at their manufacturing systems operations. The management has assigned first task for you to evaluate possible strategies to control FG inventory of ElGee at Tuas DC through

response of the final assembly manufacturing. The management is concerned of the rising inventory costs and frequent stock$-$outs, especially of the QLED$-$TV$56$ LCD TVs$.$ Assume that you have decided to carry out an analysis in order to improve the manufacturing and service performance at ElGee and to make a set of recommendations to management. You have identified FG inventory in Tuas DC is controlled by a periodic review, base$-$stock policy and review period is $1$ week.

Figure $1$ shows the flow of QLED$-$TV$56$ LCD Television sets.

$($e$)$ Based on existing inventory policy at ElGee LTD$,$ compute the base$-$stock B in FG inventory in Tuas DC to assure a coverage probability $($Type I service$)$ of $90\%$ to Kourts.

$($f$)$ Compute the average number of stock$-$outs of QLED$-$TV$56$ TVs that Kourts may expect per year, assuming $52$ weeks of operation per year.

$($g$)$ Compute the average inventory level of the QLED$-$TV$56$ TVs at the FG inventory of ElGee at Tuas DC under this policy.

$($h$)$ Suppose you have recommended Tuas DC of ElGee to re$-$order a quantity sufficient to meet one week of average demand whenever their total inventory quantity in DC reaches to a level sufficient to meet one week of average demand. Assume the daily demand from Kourts at the ElGee DC remains same. Assume both the Kourts and the ElGee work $7$ days per week throughout the year. Name revised policy stated

in the above description.

$($i$)$ What is the coverage probability $($Type $1$ service level$)$ provided to Kourts from the ElGee DC by your revised policy? How many stock$-$outs might you expect per year under this revised policy?

$($j$)$ What will be the average inventory level of QLED$-$TV$56$ TVs at FG at DC under this revised inventory control system?

Please show full working for all parts.