Question
The previous leaf spring model has three key components (Blades, Bushings, and Clamps) that are the same for the new leaf spring, which are managed
The previous leaf spring model has three key components (Blades, Bushings, and Clamps) that are the same for the new leaf spring, which are managed with a Push system, based on the following historical data: the probability of having each component in stock is SLBlades =0.77, SLBushes =0.82, SLClamps = 0.87.
Combining components in an order | Frequency of orders |
Leaves | 0.2 |
Bushings | 0.18 |
Clamp | 0.15 |
Leaves, Bushings | 0.1 |
Leaves, Clamp | 0.1 |
Bushings, Clamp | 0.1 |
Blades, Bushings, Clamp | 0.2 |
| 1.0 |
Annual sales for each component are 342,000 and maintaining a component costs approximately 18.5% of the annual cost.
Component | Cost per piece | Inv. Average |
Leaves | $205.00 | 5,790 |
Bushings | $75.00 | 2,150 |
Clamp | $45.00 | 4,050 |
Calculate:
a) Average Weighted Service Rate (TPSP) KPI for all three components.
b) The inventory rotation of each component.
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