Question
Fliboardis a startup company that develops self-balancing scooters (hoverboards) and sells online 52weeks a year Fliboard currently sells two products, Proboard(P1) and Babyboard(P2) Weekly demand
Fliboardis a startup company that develops self-balancing scooters (hoverboards) and sells online
52weeks a year
Fliboard currently sells two products, Proboard(P1) and Babyboard(P2)
Weekly demand (independent)
Proboard (P1) : 30units per week with standard deviation of 15units per week
Babyboard (P2): 20units per week with standard deviation of 10units per week
Price
Proboard : $400
Babyboard: $300Costs of battery
Proboard: $150Samsung 42V Li-ion battery (B1)
Babyboard: $100HoverFixer36V Li-ion battery (B2)
Cost of material other than battery
Proboard : $150
Babyboard: $100
Fliboard uses continuous review policy
Lot size is calculated using economic order quantity (EOQ)
Batteries are supplied independently from each supplier
Cycle service level (CSL)
Samsung battery : 0.99
HoverFixerbattery: 0.99Replenishment lead time
Samsungbattery : 4weeks
HoverFixerbattery: 4weeks
Fixed order cost
Samsung battery : $1,000per order
HoverFixerbattery: $1,000per orderInventory holding cost of battery
Samsungbattery : $60
HoverFixerbattery: $40
questions
Calculate following values for replenishing battery
(1-1) Lot size (Q)
For Samsung battery
For HoverFixerbattery
(1-2) Safety inventory (ss)
For Samsung battery
For HoverFixerbattery
(1-3) Annual ordering cost (AOC)
For Samsung battery
For HoverFixerbattery
(1-4) Annual holding cost (AHC)
For Samsung battery
For HoverFixerbattery
(1-5) Annual material cost including battery (AMC)
For Proboard
For Babyboard
Calculate total profit of the current operation (two hoverboards)
Assume annual ordering cost and holding cost of all components except batteries are negligible
Thus, we only need to consider costs AOC, AHC, and AMC in (1-3), (1-4) and (1-5) for calculating profit(1-6) Total profit
Profit = Revenue Total Cost
Where total cost is sum of:Annual material cost Annual ordering costAnnual holding cost
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