Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

with steps on excell please Cer Zone currenty holds inventories in distribution centers in five regions of the centinental Unted states, NF, SE, NC, SC,

with steps on excell please
image text in transcribed
image text in transcribed
image text in transcribed
Cer Zone currenty holds inventories in distribution centers in five regions of the centinental Unted states, NF, SE, NC, SC, and W to supply its many retall stores across the ceuntry. rou have been asked ty the V.s. of tegistici at car Zone, to determine whether it would be beneficial to centralian the stocking of some itemt and hold thern only in the me oivtribution center located in Omaha, Nebraska. The Vp has suggested that you first canaider two specific products, the Bosh oouble lriflum spark Fhas and the Pro-elte Comfort Grip steering Wheel cover. Reievant data is provided in the following tables: Asuume that the regional demands are independent, and the company wants to keep the same 97.5K service level. 4. Cefertine the curment levelr of safety stock for the two tomponents at each of the fire regional oci b. Determine the safety stock that would result frem centralication, L. ,; hold them only in the omaha outribution center. c. compare the annual aaving due to cantralzation for each component using the following misures: (i) Totaliafety stock (ii) Satety atock holding cost (iii) Cout savingi at a ptrcent of the annual material cout d. In there any signicant difference in mavings as a pertent of the annual material cost? Euplain the ferton. Car Zone currenthy holds inventories in distribution centers in five regions of the continental united states, -NE, SE, NC, 5C, and W -to supply its many retail stores across the country. You have been asked by the v.P. of Logistics at Car Zone, to determine whether it would be beneficial to centralize the stocking of some items and hold them only in the NC Distribution Center located in Omaha, Nebraska. The VP has suggested that you first consider two specific products, the Bosh Double Iridium 5park Plug and the Pro-Elite Comfort Grip Steering Wheel Cover. Relevant data is provided in the following tables. Assume that the regional demands are independent, and the company wants to keep the same 97.5% service level. 3. Determine the current levels of safety stock for the two components at each of the five regional DCs b. Determine the safety stock that would result from centralization, i.e., hoid them onily in the Omaha Distribution center. c. Compare the annual savings due to centralization for each component using the following measures: (i) Total saiety stock (ii) safety stock holding cost (iii) Cost savings as a percent of the annual material cost Cer Zone currenty holds inventories in distribution centers in five regions of the centinental Unted states, NF, SE, NC, SC, and W to supply its many retall stores across the ceuntry. rou have been asked ty the V.s. of tegistici at car Zone, to determine whether it would be beneficial to centralian the stocking of some itemt and hold thern only in the me oivtribution center located in Omaha, Nebraska. The Vp has suggested that you first canaider two specific products, the Bosh oouble lriflum spark Fhas and the Pro-elte Comfort Grip steering Wheel cover. Reievant data is provided in the following tables: Asuume that the regional demands are independent, and the company wants to keep the same 97.5K service level. 4. Cefertine the curment levelr of safety stock for the two tomponents at each of the fire regional oci b. Determine the safety stock that would result frem centralication, L. ,; hold them only in the omaha outribution center. c. compare the annual aaving due to cantralzation for each component using the following misures: (i) Totaliafety stock (ii) Satety atock holding cost (iii) Cout savingi at a ptrcent of the annual material cout d. In there any signicant difference in mavings as a pertent of the annual material cost? Euplain the ferton. Car Zone currenthy holds inventories in distribution centers in five regions of the continental united states, -NE, SE, NC, 5C, and W -to supply its many retail stores across the country. You have been asked by the v.P. of Logistics at Car Zone, to determine whether it would be beneficial to centralize the stocking of some items and hold them only in the NC Distribution Center located in Omaha, Nebraska. The VP has suggested that you first consider two specific products, the Bosh Double Iridium 5park Plug and the Pro-Elite Comfort Grip Steering Wheel Cover. Relevant data is provided in the following tables. Assume that the regional demands are independent, and the company wants to keep the same 97.5% service level. 3. Determine the current levels of safety stock for the two components at each of the five regional DCs b. Determine the safety stock that would result from centralization, i.e., hoid them onily in the Omaha Distribution center. c. Compare the annual savings due to centralization for each component using the following measures: (i) Total saiety stock (ii) safety stock holding cost (iii) Cost savings as a percent of the annual material cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions