Answered step by step
Verified Expert Solution
Question
1 Approved Answer
How frequently should i place an order to make an $1,000,000. I can't provide much info. before I start the simulation. INVENTORY MANAGEMENT SIMULATION PLACE
How frequently should i place an order to make an $1,000,000. I can't provide much info. before I start the simulation.
INVENTORY MANAGEMENT SIMULATION PLACE ORDER Revenue Costs DECISION POINT CLOSE 125 100 Place New Order Place An Order for Amulet 1.0 75 50 25 You can place a maximum order of 4,000 units in multiples of 50. The larger your order, the higher your holding costs. However, smaller orders mean more frequent re-ordering costs. 1 2 3 4 5 6 -Order Size 50 Units Inventory 40 20 20 $95 Cost Per Unit: Purchase Cost: $4,750 1 2 3 4 5 6 Shipping Fee: Normal shipping(5 days) - $6,000 Total Units Sold Total Cost: $10,750 PLACE ORDER & START SIMULATION CLOSE Total Pro DUSS odustauun Hmmmm INVENTORY MANAGEMENT SIMULATION PLACE ORDER THIS MONTH THIS QUARTER YEAR-TO-DATE Revenue Costs 125 100 75 Cost/Revenue ($) Costs and Revenues will appear here as the simulation runs 50 25 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Day of Month Inventory Units left: 0 Demand: 0 Please make a decision to begin. 40 30 20 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Day of Month Total Units Sold Total Revenue Total Costs 0 $0 $0 Total Profits for Year 1) Boss Satisfaction Hmmmm $0.00 of $1,000,000 Goal Based on last year's numbers and expected trends into this year, our analysts have concluded the following about the Amulet: Cost of product: $95/unit The sales price of the Amulet is $200/unit. Supplier has confirmed that this will be the average per-unit cost when we place orders in 50-unit increments (Each box has 50 units). Costs of ordering and delivery: $6,000 per order We have reached an agreement with the shipping service. All purchases will be billed at a flat rate of $6,000 for each order placed in the normal order cycle, which requires a 5 days lead time. Rush orders will be charged $40 extra per unit. They will arrive the next day. The Accounting Department estimates the cost of holding inventory to be $1.35 per unit per day. This amount includes warehouse rental costs and insuranceStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started