Question

3:01 AM Thu Jan 16 85% 5 TODO + BO Assignment 2 Name: Problem 1 A production company A, made JITD strategic alliance with a distribution company B. The content of alliance is, Company A executes work for company B's inventory management and all the inventory cost caused from B is responsible on A. The decision for inventory replenishment is made on every Saturday, An order quantity is arrived every Sunday night after the delivery-process from A to B. The amount of starting inventory is 50 at Week 0 Inventory holding cost: 1,000 won/week per unit When the shortage is incurred, it is considered as Lost-sale, not as Backorder, Lost-sale cost: 2,000 won/week per unit. Inventory replenishment happens when the inventory level is under 20(not including 20th), and the amount of inventory to be refilled is calculated as "50-current inventory level". Transportation cost: 50,000 won per every delivery If the total number of satisfied demand - the total number of Lost-sale is greater than 110(not including 110th), the incentive, 20,000 won per extra unit is given to A. Following table shows weekly demand of 'B' company for last 8 weeks. Please answer based on the information given above. All the cost is calculated from week I(not from week 0). 1 2 Week 3 4 5 6 7 8 Total 15 20 10 15 30 20 5 35 150 Weekly demand Satisfied demand Inventory level 50 at the end of Week Holding cost Shortage cost The amount of Inventory to be replenished Transportation cost (1) How much inventory does company A replenish for the first time? (2) Ilow many times does company A replenish inventory for 8 weeks? (3) Ilow many times does company B experience inventory shortage for 8 weeks? (4) Ilow many demands of company B were met for 8 weeks among 150? (5) How much does company A have to pay for total shortage cost for 8 weeks? (6) Company A would experience (More profit or Loss of profit), and the difference between the total expense and the total incentive would be won. [Note: Total expense of company A = holding cost+ shortage cost-transportation cost. If the total expense is lower than the total incentive company A would receive, we consider "More profit". Otherwise we consider it as "Loss of profit"]

Answer 1

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