(4 points) Based on the economic order quantity (EOQ) modelling, if the company is turning their inventory four times in

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4 Points Based On The Economic Order Quantity Eoq Modelling If The Company Is Turning Their Inventory Four Times In 1 (75.17 KiB) Viewed 29 times

(4 points) Based on the economic order quantity (EOQ) modelling, if the company is turning their inventory four times in a year, the implied flow time is.......... weeks, assuming 52 weeks in a year. Show the mathematical algebra in achieving the correct final result to get credit. (6 points) A business operating under demand uncertainty forecasted the mean annual demand and standard deviation as 1200 units and 200 units, respectively. The company decided to utilize a safety factor level of 1.40. The lead-time from the supplier is set at 60 days. As such, the optimum safety stock under the 360 working days assumption is: Show the mathematical algebra in achieving the correct final result to get credit. (10 points) An American retailer buys the winter-coats for $50 each from a regional supplier and sells them for $150 each during the regular season. The demand for the winter-coats is forecasted with normal distribution of 300 on the average and the variability is expressed with 50 units. Any winter coat left unsold in the regular winter season, can be sold at a discount house for $25, but the retailer must pay for the transportation cost to the discount store with 10 cents per dollar invested originally. In the case that demand is more than the initial procurement from the regional supplier, a second procurement is possible. However, the supplier increases the price to $70 from the original $50 each. Find the unit understocking (Cu) and the unit overstocking (Co) costs for the American retailer.