Reference no: EM13103755
Motorola obtains cell phones from its contract manufacturer located in China to serve U.S. market. The U.S. is served from a warehouse located in Memphis, Tennessee. Daily Demand at the Memphis warehouse is normally distributed with a mean of 5,000 and a standard deviation of 4,000.The warehouse aims for a CSL of 99 percent. The company is debating whether to use sea or air transportation from china. Sea transportation results lead time of 36 days and costs $0.50 per phone. The air transportation results in a lead time of 4 days and costs $1.50 per phone. Each phone costs $100 and Motorola uses a holding cost of 20 percent. Given the minimum lot sizes, Motorola would order 100,000 phones at a time (on average, once every 20 days) if using sea transport and 5,000 phones at a time (on average, daily) if using air transport. To begin with, assume that Motorola takes ownership of the inventory on delivery.
a) Assuming that Motorola follows a continuous review policy, what reorder point and safety inventory should the warehouse aim for when using sea or air transportation?
b) How many of safety and cycle inventory will Motorola carry under each policy?
c) Under a continuous review policy, do you recommend sea or air transportation if Motorola does not own the inventory while it is in transit? Does your answer change if Motorola has ownership of inventory while it is in-transit?
d) suppose, its possible to get rid of variablility in the lead-time as the deliveries are made via sea transportation. what is the most motorola would be willing to pay for this, ie the deliveries would be guaranteed to arrive within 36 days?
|
Determine the appropriate reoder point
: A company's total output for DVDs is 5,000 units (20 per day), and the cost per unit is $60. The total time between date order and date of receipt is 5 days.
|
|
Determine the average waiting time in line
: Since the deregulation of the airline industry, fierce competition has forced Global Airlines to reexamine their operations for efficiency and economy. As part of their campaign to improve customer service, they have focused on passenger check-in ope..
|
|
Probability of graduate degrees
: A firm plans to hire 100 employees during the year. It expects that 25 of these employees will obtain graduate degrees within the next 5 years of being hired.
|
|
Explanation for the hpi processes
: On an airplane, you find yourself sitting next to an executive whose goodwill is important to you either as a client or as a senior leader of your company.
|
|
Case study - motorola
: Motorola obtains cell phones from its contract manufacturer located in China to serve U.S. market. The U.S. is served from a warehouse located in Memphis, Tennessee.
|
|
Determine the best time to promote
: When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions?
|
|
Calculate economic order quantity
: If Mercedes Benz realizes that its annual demand for 500SEL model is 50,000 and their cost of order preparations is $42,000.00 and the inventory carrying cost per car per year is $3,600.00.
|
|
Confi dence interval to test your null hypothesis
: Enter the data into R, and calculate the means for placebo and epinephrine. Find a 95% confi dence interval for the mean diff erence in cholesterol levels between the placebo and epinephrine. Use the confi dence interval to test your null hypothes..
|
|
What proportion of chocolate bars weighs less
: Chocolate bars produced by a certain machine are labeled with 8 oz. The distribution of the actual weights of these chocolate bars is Normal with a mean of 8.1 oz and a standard deviation of 0.1 oz. What proportion of chocolate bars weighs less th..
|