What is the average inventory in the system

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Reference no: EM13960696

The soy milk of Assignment 1 is now bottled and ows out of the production plant at a constant rate of 150lb/hr. The bottles each contain 0.5lbs soy equivalent of milk and all ow into a packaging facility annexed to the plant where they are shipped to clients around the country. With a unit holding cost of $1 per week and per bottle, a fixed shipping cost of $1000, and a shipping size of 3600 bottles.

Assume that the plant operates 24/7 without breaks. Suppose now that only two clients exist. 5,000 bottles are shipped every Wednesday night at midnight to the first, and 7,600 bottles are shipped every Sunday night at midnight to the second, all year round. Please, (vii) draw the inventory diagram of the facility. (viii) What is the average inventory in the system? Can you use the Little's law? (ix) What would be the yearly average cost with the same holding and fixed shipping costs? Finally, if the next Monday's shipping needs to be suddenly anticipated because inclement weather will increase its delivery lead time, (x) how many hours earlier can we send out the entire

Reference no: EM13960696

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