Administrative processing and transportation

Assignment Help Operation Management

Reference no: EM131128560

Suppose the weekly demand for a popular tablet computer follows the normal distribution, N(1500, 200) in UK, N (2000, 250) in Germany, and N (1200, 200) in France. Amazon sources the tablet at $250 per unit, and the sourcing lead time is 2 weeks. Each sourcing order costs Amazon $200 in administrative processing and transportation. The company uses a continuous review (R, Q) policy to manage inventory and targets a 98% service level (k = 2.054). Assume an annual interest rate of 50% to calculate inventory holding cost and 52 weeks in a year. What are the order quantity Q and reorder level R for each DC? Define cycle stock as Q/2, safety stock as R minus the expected demand during lead time, and average inventory as the sum of cycle stock and safety stock. What is the total amount of average inventory held in all three DCs? If Amazon uses one single DC to serve the tablet demand in all three countries, what are the resulting Q, R, and average inventory held in the DC? How many units of inventory are saved compared to 1?

Reference no: EM131128560

Questions Cloud

How many turns of the tca cycle are required : How many turns of the TCA cycle are required to use up the carbons from the added acetyl-CoA.- Follow the carbons of Acetyl-CoA through the cycle.

Discuss ethics of continuing to do business with this firm : Discuss the ethics of continuing to do business with this firm. In this discussion evaluate the economic, legal and ethical issues. Describe how a written code of ethics might impact your decision.

How to synthesize a compound : Using cyclooctyne as your starting material, show how you would synthesize the following compounds. (Once you have shown how to synthesize a compound, you may use it as the starting material in any later parts of this problem.)

Write enzymes of glycolysis in the correct order : Below are the enzymes of glycolysis. Write them in the correct order and write out what reaction it carries out on which molecule.

Administrative processing and transportation : Suppose the weekly demand for a popular tablet computer follows the normal distribution, N(1500, 200) in UK, N (2000, 250) in Germany, and N (1200, 200) in France. Amazon sources the tablet at $250 per unit, and the sourcing lead time is 2 weeks. Eac..

What are the objectives of workers compensation : Explain the rationale for workers' compensation. What are the objectives of workers' compensation? Who is covered by this program, and how does it help prevent future accidents?

What is the productivity after the change in work rules : Gibson Products produces cast bronze valves for use in offshore oil platforms. Currently, Gibson produces 1600 valves per day. The 20 workers at Gibson work from 7 a.m. until 4 p.m.,Calculate labor productivity for the initial situation. Calculate la..

Describe the manager functional role in the organization : Managers have the responsibility to oversee and influence the direction of an organization. Their input is critical to an organization's performance and success. Describe the manager's functional role in the organization. Explain expectations of ..

Who knows what the future will bring : Cell phones are constantly evolving. There are iPhones, Droids, and Blackberries, and more. Who knows what the future will bring? Using the resources listed and your own research the affects of technology disposal.

User Account

All Pages