Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Note: The carrying capacity for Full container is 1400 units
Half container is 700 units
Transcribed Image Text:ImportHome LLC
Revisit: Company Background
▪ Family business: self-financed, home as office, garage as warchouse, self-maintained
online store
.
Annual revenue around $600,000
B2C online retailer of kitchen-ware: soymilk maker, pressure cooker, frying pan, etc.
Target at the Chinese community in North America
.
Gourmet
soy milk maker
.
Gourmet Automatic
Pressure Cooker
Joyoung
soy milk maker
ID
Fuji
WoK/Frying Pan
±
Joyoung soy milk
maker w/Case
Assumptions:
1. Estimated Shipping cost, C, $3300 (full container)
C, = $2100 (half container)
Karaoke Machine
BOLUW
Boluw
■ Lead time for Full Container is 13 weeks.
• Lead time for Half Container is 15 weeks.
Inventory holding cost, C₂ = 18% of the product price
Product Price = $90
Assume Service level 95%
The aggregated quantity of products needs to be ordered for the business.
Please use sales data from the attached excel file to determine
DVD PLAYER
DVP
fa
Gourmet Automatic
Water Heater
Car wireless
Phone Receiver
The task:
Please determine the best inventory model based on 2 years sales data, select the shipping
method (full container vs half container) and calculate annual operating cost.
Transcribed Image Text:Week
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
21
22
23
24
25
26
27
28
09
29
30
31
44
33
34
35
36
37
38
34
40
41
43
ZA
44
45
46
47
48
49
50
51
52
53
54
24
55
56
DA
57
58
59
60
61
62
63
64
65
66
67
68
69
70
31
31
72
73
74
75
76
77
78
79
80
81
82
83
84
84
86
87
88
89
00
90
91
07
92
93
94
95
96
97
Aggregated
Sales Data
Weekly in Units
236
235
136
129
173
212
185
98
99
90
100
101
102
103
180
133
144
132
כגון
97
191
179
26
76
121
50
=
154
209
139
750
116
75
249
159
154
96
112
125
237
149
188
136
100
117
172
180
142
141
69
204
78
213
227
179
72
154
146
72
85
218
123
199
56
240
112
126
235
106
139
170
217
169
93
94
60
22
162
102
191
90
91
77
68
69
71
60
65
59
71
21
104
100
105
70
75
22
68
100
122
100
98
50
100
102
96
87
82
53
96
105
88
241
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