Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The demand for the past 5 months: 4 1 33 2 35 3 36 5 40 38 A 29 30 35 40 44 B Transportation
The demand for the past 5 months: 4 1 33 2 35 3 36 5 40 38 A 29 30 35 40 44 B Transportation cost per unit: Outbound (to local Inbound market) 12 13 13 11 B . B 13 21 18 11 company has two warehouse located in two cities A and B. the warehouses receive items from the company's manufacturing facility and distribute them locally. The company decides to provide their customers with satisfaction level of 95% (Z=1.65 in this case). The cost of an order is $5000 for each of the warehouse. The inventory holding cost is $2 per month. The lead time for the order is one month. They are considering an option of using A as a central warehouse. Based on the information above, please determine which option is better: 1. Keep the two warehouses; and 2. Using A as a central warehouse. Please also determine the safety stock level , reorder point, and order quantity for these two scenario. The demand for the past 5 months: 4 1 33 2 35 3 36 5 40 38 A 29 30 35 40 44 B Transportation cost per unit: Outbound (to local Inbound market) 12 13 13 11 B . B 13 21 18 11 company has two warehouse located in two cities A and B. the warehouses receive items from the company's manufacturing facility and distribute them locally. The company decides to provide their customers with satisfaction level of 95% (Z=1.65 in this case). The cost of an order is $5000 for each of the warehouse. The inventory holding cost is $2 per month. The lead time for the order is one month. They are considering an option of using A as a central warehouse. Based on the information above, please determine which option is better: 1. Keep the two warehouses; and 2. Using A as a central warehouse. Please also determine the safety stock level , reorder point, and order quantity for these two scenario
Step 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