Supply chain coordination issues have been of great interest to researchers for many years especially since 1990s there has been a surge in research in these topics (Burgess et al. 2006). Different perspectives has been proposed on SCC such as “the order‚ forecasting‚ procurement‚ and information sharing procedures among the members of the supply chain” (Therese M. Flaherty‚ 1996) and “SCC is concerned with managing dependencies between various supply chain members and the joint efforts of all supply
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through Minimum Order Quantity Analysis Lean Six Sigma in Retail & Distribution Mitch Millstein‚ CFPIM‚ C.P.M.‚ CQM‚ CQE Supply Velocity‚ Inc. mitch@supplyvelocity.com (314) 406-4962 November 2009 info@supplyvelocity.com Copyright: Supply Velocity‚ Inc. 1 Background A Value Stream Assessment (See White Paper: Finding Productivity Improvements from Field to Table) at this Grocery Retailer & Distributor identified poor productivity in its distribution centers during order selection and in
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associated with the demand for NFL replica jerseys. Because of uncontrollable factors (unpredictable popularity and success of both teams and specific players)‚ demand fluctuates and is variable. In order for Reebok to have successful and efficient inventory planning‚ Reebok should reach an optimal order quantity that would balance both overage and underage cost. The ultimate goal for Reebok should be to maximize profit‚ which will be achieved through balancing out these costs. Reebok should also try
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engine costs $500‚ and Harley incurs uses holding cost of 20 percent. a) How many engines should Harley load onto each truck (i.e. what is the optimal order quantity)? D = 3‚000 S = 1‚000 C = 500 h = 0.2 Q* = SQRT((2DS)/(hC)) = SQRT((2*3000*1000)/(0.2*500)) = SQRT(6000000/100) = 244.979 b) What is the corresponding optimal order frequency? n* = D/Q* = 3000/244.979 = 12.247 c) What is the cycle inventory of engines at Harley? Cycle inventory = Q*/2 = 244.979/2 = 122.474
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Littlefield Technologies Game 2 Strategy – Group 28 1. CUSTOMER ORDERS AND ORDERS WAITING FOR MATERIAL: When considering the demand level and changes‚ we would configure a time series of that data using short range forecasting. Time series are important because they are often the drivers of decision models. Trend projection and regression analysis models will be used to forecast the future demand as the growth of the demand increases at a lower level‚ increases to a higher level‚ and then decreases
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= $3059.4 + $3059.4=$6118.8 So‚ except for rounding annual ordering cost and carrying cost equal at the EOQ. IV) TC200= (200/2)*$30+ (10400/200)*60=$3000+$3120=$6120 Office manager should not use the optimal order size instead of 200 boxes because it is 1.2 higher than with EOQ. So 200 boxes is acceptable. 1. b Given that‚ Expected demand during lead time= 300 units Sigma dlt=30 units I) ROP= Average demand during lead time+ safety stock
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× 3120 Q∗ = = = 3869.88 ≈ 3870 h 0.005 The time between orders is given by 3870 Q∗ = = 1.24 yr = 14.88 mo T∗ = D 3120 (b) D 3120 units/yr = $12 = $9.67/yr Q 3870 units Q 3870 units Holding cost is h = × $0.005/yr = $9.675/yr. 2 2 The costs are essentially the same. This is always true in the case of the EOQ model. Set up cost is A (c) The problem could be where to store all the items. If we were to order 1.24 years worth of styrofoam ice chests at a time it could take
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Delivery Charges Production Cost Annual Holding Cost per Unit S C h $ $ Weekly Usage (gallons) Annual Demand Order Quantity D $ $ Annual Holding Cost per Unit per year Number of Orders Per Year Average Inventory Annual Ordering Cost Annual Holding Cost EOQ Q H = h*C D/Q Q/2 (D/Q)*S (Q/2)*H ??? = 35.00 1.20 35% 250.00 13‚000.00 2500 $ $ $ $ 2 ∗ ? ∗ ??? ??? 0.42 5.20 1250 182.00 525.00 $ 1‚472.00 .06473697917 = 6.474% a. $ $ 525.00 182.00 AHC AOC $ 707.00 b. $ $ 105.00 910.00
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chemical that can be mixed with air to create an efficient thermal acoustic insulator. Jacobs Industries produces chemicals in batches and loads the drums to be shipped by truck to the warehouse. If Jacobs Industries cannot fill the order within 24 hours of receiving the order then the business is lost. The chemical is packed and shipped in drums costing $1450 apiece. The company has been running for two years (730 days) and has shown a seasonal trend in sales. In two years’ time a new foam technology
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Sport Obermeyer 1 Sport Obermeyer’s Time Line and “Speculative” versus “Reactive” Production "NOW" Initial Forecast 9 months Feb … Oct 1992 … 1992 Design of 1993-94 Line. Las Vegas Revised Forecast 5 months Nov … Mar 1992 … 1993 5 months April … Aug 1993 … 1993 "Speculative" Production "Reactive" Production of 1993-94 Line of 1993-94 Line In Feb 1993‚ start design of 1994-95 line. “Speculative” Production 27 Months Sept 1993 Oct 1993 Nov 1993 8 months Dec Jan 1993 1994 Selling of
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