Selco - supply chain and logistics

Q1. (10 points) Give your definition of ROP, DDLT, and SS and write down the mathematical relationship between the 3 variables. Q2. (25 points) The financials for a company is summarized below: Purchasing department pays the invoices of suppliers 45 days after date of invoice The customers pay for the goods on the average 30 days after date of invoice The company's annual COGS (cost of goods sold) 1,040,000,000 TL The company's average inventory of supply is 90,000,000 TL 1) What is the average inventory days of supply 2) What is the value of 'Cash-to-cash cycle time' in days Q3. (30 points) Given the below values for a product Annual Sales Weekly standard deviation of sales Reorder point Leadtime Order size 780 units/year 15 units 40 units 2 weeks 70 units Questions. 1. Plot inventory vs. time graph 2. What is the average weeks of inventory kept ? 3. What is the inventory turnover ratio ? 4. What is the value of coefficient of variation of sales? 5. What is the value of demand during leadtime? 6. What is the value of safety stock? Q4. (25 points) The 40 week demand data for a product is given below. Replenishment cycle is weekly and lead time is 3 days. Week Sales 2055352531 10 11 12 17 20 1 210 6 273 8 17 13 224 14 285 15 363 16 332 18 461 19 417 328 3302541 433 1841 242 149) 23 Week Sales 22 2931450 23 24 25 26 27 96 294 335 438 4051 28 291 30 33 304 387 338] 605 35 333 36 182 37 273 38 269 39 524 274 357 253) 1) Draw the sales vs. time graph 2) Draw the demand profile histogram 3) Calculate average value of demand 4) Calculate safety stock 5) Calculate the target inventory for a service level of 90 %