RDS Digital Services (RDS) - Inventory Case Always include units with answer and calculate to two decimal places. Can use SQRT for the Square Root sign. ROP= ddLT+SS EOQ 2DS Inventory Turns = Cost of Goods Sold/ Inventory Value = H Weeks Supply Inventory Value / Average Weekly Cost of Goods Sold Hardware Packages OR # of weeks/turns = Management at RDS Digital Services (RDS) would now like you to look at its inventory control practices at its current distribution centre that services Ontario and Eastern Canada. RDS sells 420 hardware packages per day and they are open every day for 51 weeks of the year. RDS sources its hardware from its parent company located in Hartford, Connecticut and their deliveries and lead-time are very reliable. The products RDS provides to their customers are exclusive they are the only Canadian supplier. Although they work very hard to ensure their service level is high, avoiding stockouts is not critical. They know the holding cost is $23 per hardware package and each time they order it They know the holding cost is $23 per hardware package and each time they order it costs them $105. The lead time from the parent company in Hartford is 2 weeks (14 days). They usually carry $1,436,925 in stock and each hardware package costs $100 with a selling price of $275. They have chosen to carry an extra 240 hardware packages...just in case. They have asked you to determine the following: A) What are the current Inventory Turns? You MUST show all your calculations, show your work out to two decimal places AND state units. (8 marks) B) What is the Weeks Supply on hand as of today? Show all your calculations, show your work out to two decimal places AND state units. (3 marks) C) They use perpetual inventory counting. At what inventory level should they reorder hardware packages? You must show all your calculations. (4 marks) D) What quantity should they reorder each time? You must show all your calculations. (8 marks) E) Examine their current safety stock policy. Would you recommend it be higher or lower and explain your reasoning. Management is looking for two points/reasons to justify your one recommendation. Include all related savings/or costs that will be incurred. (4 marks) F) In addition to their safety stock policy, explain one additional significant inventory management change they could make. Quantify the savings or additional costs