total safety stock in pieces: 2155

 

total safety stock in dollars: $1078 million

 

please only solve questions 5 and 6.

 

  

Question No. 4.-Do current safety stocks protect the operation adequately from supplier delivery performance issues? If not, how much safety stock do you suggest to be carried for each part number and in total stated in pieces and dollars? (Fill missing spaces in table first to calculate) High Runner Purchased Parts PART NO. 1A1 Risk of Exposure to Material Shortages in Days (") (3 days X 0.15) 0.45 days PART NO. CCC (1day X 0.02)-0.02 day PART NO. 282 (1 day X 0.1) 0.1 day Current Planned Safety Stock in Days 0.29 day Position vs Current Safety Stock Level 0.16 day short Daily Requirement Suggested Safety Stock Level in Pieces Suggested Safety Stock Level in Dollars 3500 pcs 24000 pcs 1000 pcs (0.45 x 3500) 1575 pcs (1575 x 5500)+ $788 K Suggested Total Safety Stock in pieces, Suggested Total Safety Stock in dollars Tip Suggested Total Safety Stock in Dotian Suggested 55 for Part 1A1 Suggested SS for part CCC Suggested SS for Part 282 (all ind Question No. 5.- If you concluded to suggest new buffer stock levels would these changes improve the company's cash flow position? If so, by how much? Difference in Cash Position Tip Compare initial Total Inventory in Dollars with Total Inventory in Dofusing suged 55 levels Question No. 6.- What purchasing practice could you suggest changing, regardless of buffer stock levels, which could have an even greater impact on cash flow? Tip Check the lot se inventory generated Explain: