I need your help to make this Assignment #2

can you please go through all the questions step by step?

Course: QUAL8085 Applied Operations Management

Assignment Instructions/Questions

The Ontario Provincial Government hired you as a consultant to help identify "efficiencies". One potential area of cost reduction is to centralize the procurement of basic supplies across multiple school boards. Before conducting a detailed investigation of cost savings, you have been asked to make a report illustrating potential benefits by focusing on a single commodity.

One basic commodity that is procured by the individual boards is copy paper. This is a high-use item, and the usage and procurement details for each board are as follows (assume that the school year is 12 months and usage is relatively constant). The unit price of a paper box is $70, and the annual holding cost for a box is $3.

	Monthly usage	Cost of placing an order (estimated fixed cost)	Current Order size
School Board A	600 boxes	$1500	1800 boxes
School Board B	250 boxes	$900	450 boxes
School Board C	350 boxes	$950	350 boxes
School Board D	450 boxes	$1150	1650 boxes
School Board E	650 boxes	$1250	950 boxes
School Board F	200 boxes	$450	350 boxes
School Board G	250 boxes	$1150	250 boxes

-Could you write a report for the government detailing your analysis and procurement recommendations?

-You will want to calculate the current state total purchasing costs using the given order quantities and compare them to the total purchasing costs leaving the decentralized order process in place but applying economic order quantities for each school board and to the total purchasing costs after establishing a centralized order process utilized an economic order quantity for this process as well.

-Clearly state all assumptions.

-If it was known that the lead time was 1 week, would this change your conclusion (consider fixed cost and order process)?

-Within the centralized option, assume that the lead time is actually 1 week and suppose that lead time demand follows a normal distribution and the standard deviation of the lead time demand is 50 boxes.

-As copy paper is a critical commodity and centralizing this commodity does pose some supply risk, in making your recommendation to management, you are proposing to put some safety inventory in place to ensure that a service level of 95% order fulfillment to the schools is achieved. How does this impact your reorder point?

- Please explain in detail, showing your calculations.