Weekly demand for private label washing machines at a department store is normally distributed with a mean of 500 and a standard deviation of 300. The company has a supply source in China that delivers machines at a cost of 200 Euro. The lead time required by the supplier is normally distributed with a mean of nine weeks and a standard deviation of six weeks. A local supplier has offered to deliver washing machines with a guaranteed lead time of one week at a cost of 210 euro. The company has an annual holding cost of 25% and targets a CSL of 99%. How much is the annual cost of motors from local suppliers? The data are also provided in the excel sheet. Must show your work on the excel file. $5,460,000 $6,4752,000 $5,113,000 $7,980,125 Inputs Average demand per unit time, D = Lead time from Chinese supplier, L = SD of demand per unit time, op = SD of lead time for Chinese supplier, SL Holding cost, h = Target cycle service level 500 9 300 6 25% 0.99 Distribution of Demand during Lead Time Mean demand during lead time, D. = SD of demand during lead time, ou = Safety Inventory and Costs with Chinese Supplier Safety inventory, ss = Reorder point, ROP = Cost per motor Annual holding cost Annual cost of motors Total annual cost with Chinese supplier 200 1 210 Safety Inventory and Cost with Local Supplier Lead time of local supplier Cost per motor from local supplier Required safety inventory Annual holding cost Annual cost of motors from local supplier Annual cost with local supplier Savings from using XXX supplier Weekly demand for private label washing machines at a department store is normally distributed with a mean of 500 and a standard deviation of 300. The company has a supply source in China that delivers machines at a cost of 200 Euro. The lead time required by the supplier is normally distributed with a mean of nine weeks and a standard deviation of six weeks. A local supplier has offered to deliver washing machines with a guaranteed lead time of one week at a cost of 210 euro. The company has an annual holding cost of 25% and targets a CSL of 99%. How much is the annual cost of motors from local suppliers? The data are also provided in the excel sheet. Must show your work on the excel file. $5,460,000 $6,4752,000 $5,113,000 $7,980,125 Inputs Average demand per unit time, D = Lead time from Chinese supplier, L = SD of demand per unit time, op = SD of lead time for Chinese supplier, SL Holding cost, h = Target cycle service level 500 9 300 6 25% 0.99 Distribution of Demand during Lead Time Mean demand during lead time, D. = SD of demand during lead time, ou = Safety Inventory and Costs with Chinese Supplier Safety inventory, ss = Reorder point, ROP = Cost per motor Annual holding cost Annual cost of motors Total annual cost with Chinese supplier 200 1 210 Safety Inventory and Cost with Local Supplier Lead time of local supplier Cost per motor from local supplier Required safety inventory Annual holding cost Annual cost of motors from local supplier Annual cost with local supplier Savings from using XXX supplier