܀ ܀ HighMed, a manufacturer of medical equipment, is located in Madison, Wisconsin. HighMed currently divides the United States into twenty-four territories, each with its own sales force. All product inventories are maintained locally in each territory and replenished from Madison every four weeks using UPS. The average replenishment lead time using UPS is one week. UPS charges at a rate of $0.66 + 0.26x, where x is the quantity shipped in lbs. The products sold fall into two categories - HighVal and LowVal. HighVal products weigh 0.1 lbs and cost $200 each. Weekly demand for HighVal products in each territory is normally distributed, with a mean of μч = 2 and a standard deviation of σ = 5. LowVal products weigh 0.04 pounds and cost $30 each. Weekly demand for LowVal products in each territory is normally distributed, with µ = 20 and σ = 5. HighMed maintains sufficient safety inventories in each territory to provide a CSL of 0.997 for each product. Annual holding cost at HighMed is 25%. In addition to the current approach, the management team at HighMed is considering two other options: Option A: Keep the current structure but replenish inventory once a week rather than once every four weeks. Option B: Eliminate inventories in the territories, aggregate all inventories in a finished-goods warehouse at Madison, and replenish the warehouse once a week. ܀ If inventories are aggregated at Madison, orders will be shipped using FedEx, which charges $5.53 + 0.53x per shipment, where x is the quantity shipped in lbs. The factory requires a one-week lead time to replenish finished-goods inventories at the Madison warehouse. An average customer order is for 1 unit of HighVal and 10 units of LowVal. What should HighMed do?

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Tyler decided to open a bakery because everyone he knew told him that his baked goods were "out of this world." He had a little bit of a business school background because he got his Bachelor's from SPS at UIW recently. He remembered his teacher telling him that inventory models can be used for both the raw materials as well as the finished products for a business like his. So, he decided to see if he could use the basic EOQ model for identifying how much quantity to order of raw materials such as eggs, flour, sugar, etc. To get started, he decided to create a model for flour based on the information he had on hand regarding potential costs as follows: Usage per month 100 Ibs Purchase cost $1 per Ib. Order cost $10.00 per order sent Annual Holding Rate 10% of purchase price per Ib. • 52-week year 300 working days per year • Lead time 2 days Fill in the following table based on this information: Optimal Inventory Policy Answer Type 7 Reorder Point r Ibs. 8 Number of Orders Per Year…

SKU One is sold at retail store for $8 per unit. SKU One has a weekly demand of 975 units with an average lead time of 5 weeks and a standard deviation of lead time of 2 weeks. Based on the information and a 95% service level, what is the reorder point for SKU One?   please show work how to solve