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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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