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Plastic AB distributes plastic buckets. The plant warehouse currently has 280 000 buckets on stock, 20 000 of these are retained as safety stock. Plastic

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Plastic AB distributes plastic buckets. The plant warehouse currently has 280 000 buckets on stock, 20 000 of these are retained as safety stock. Plastic AB also have three distribution centers, placed in Jnkping, Gvle and Mora. Jnkping has an inventory of 45 000 units and a daily demand of 19 100 units, Gvle has an inventory of 80 000 units and a daily demand of 30 000 units. Mora has an inventory of 90 000 units and a daily demand of 30 000 units. Given the above information use fair-share-allocation logic to determine the number of buckets that should be allocated to each DC. (4p) Formulas EOQ = (2DCo 0e = 7,+ D2S? SL = 1 -f(ko 0Q SS = koc FD 0= n ROP = DT + SS DS AQ +9=1" D I= This + SS + IT ss = uss A; = (ps -)-D; k AKT 0.0 3989 1.8 .0232 0.1 3509 1.7 .0182 0.2 3068 1.8 .0143 0.3 2667 1.9 .0111 0.4 2304 2.0 .0085 0.5 .1977 2.1 .0065 0.6 .1686 22 .0049 0.7 .1428 23 .0037 0.8 .1202 2.4 .0027 0.9 .1004 2.5 .0020 1.0 .0833 26 .0015 1.1 .0686 27 .0011 1.2 0561 2.8 .0008 1.3 0455 .0005 1.4 0366 3.0 .0004 1.5 0293 3.1 .0003 Figure 1. Loss integral for Standardized Normal Distribution 29 Plastic AB distributes plastic buckets. The plant warehouse currently has 280 000 buckets on stock, 20 000 of these are retained as safety stock. Plastic AB also have three distribution centers, placed in Jnkping, Gvle and Mora. Jnkping has an inventory of 45 000 units and a daily demand of 19 100 units, Gvle has an inventory of 80 000 units and a daily demand of 30 000 units. Mora has an inventory of 90 000 units and a daily demand of 30 000 units. Given the above information use fair-share-allocation logic to determine the number of buckets that should be allocated to each DC. (4p) Formulas EOQ = (2DCo 0e = 7,+ D2S? SL = 1 -f(ko 0Q SS = koc FD 0= n ROP = DT + SS DS AQ +9=1" D I= This + SS + IT ss = uss A; = (ps -)-D; k AKT 0.0 3989 1.8 .0232 0.1 3509 1.7 .0182 0.2 3068 1.8 .0143 0.3 2667 1.9 .0111 0.4 2304 2.0 .0085 0.5 .1977 2.1 .0065 0.6 .1686 22 .0049 0.7 .1428 23 .0037 0.8 .1202 2.4 .0027 0.9 .1004 2.5 .0020 1.0 .0833 26 .0015 1.1 .0686 27 .0011 1.2 0561 2.8 .0008 1.3 0455 .0005 1.4 0366 3.0 .0004 1.5 0293 3.1 .0003 Figure 1. Loss integral for Standardized Normal Distribution 29

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