- Alpha Corp A Is A Company Producing Lawn Mower Beta Corp B Is A Company Producing Motor For The Lawn Mower Recen 1 (171.85 KiB) Viewed 45 times
Alpha Corp. (a) is a company producing lawn mower. Beta Corp. (B) is a company producing motor for the lawn mower. Recently ß is in negotiation with a for the supply of motor for the year 2023. After the negotiation, ß realise that there is a great need for it to forecast a's future demand for the year 2023. Therefore, ß uses a's quarterly demand over the past four years (2019 - 2022) to forecast a's future demand for the year 2023. Table 1 show a's quarterly demand over the past four years (2019-2022). Table 1: a's quarterly demand for the years 2019 - 2022 (in thousands) Quarter 1 Year Quarter 2 Quarter 3 2019 2020 2021 2022 *Random number between 400 to 600 from excel SECTION A (20 marks) Q1) Fill up the table with random numbers between 400 to 600 by using Microsoft Excel. * * Quarter 4 * * * Note: Take a snapshot of your excel file and attached with answer as a proof. Q2) Calculate a's forecasted demand for four quarters of 2023 using trend regression line and seasonal variation factors through moving average technique.
Q3) a is planning a budget to purchase the motors from ß in 2023. Currently a is purchasing the motors quarterly. But, now they have decided to apply EOQ model instead of purchasing quarterly. Assume that a is now experiencing regular demand from the customer, the ordering cost is RM50 per order, the unit cost is RM320 per motor, and annual holding cost are 20% of the unit cost. a also has 250 working days per year and a lead time of 5 days. Based on the result from Q2) identify the following aspects of the inventory policy for the motors: a) Economic order quantity (EOQ) b) Reorder point c) Cycle time d) Total annual inventory cost e) If a want to choose between quarterly and EOQ, which purchasing practice would you recommend to it. Justify your selection.