![emilie3849](/avatars/45255.jpg)
emilie3849
06.04.2021 •
Business
Assuming a service level of 99% for all parts, what will be the impact on the total inventory investment if the number of warehouses is reduced from 8 warehouses to 2? Reduced to 1? Assume that each of the 8 warehouse has roughly equal demand and, when consolidating the warehouses, the total demand across all 8 warehouses is equally divided between the remaining warehouses.
A. Using data from the case, complete the table below. Note that Exhibit gives the standard deviation of the bi-weekly demand for 8, 2, and 1 warehouses respectively. Use these values to calculate the Stdev of weekly demand.
Product Griffin Beaker Erlenmeyer Flask
# of Warehouses 8 2 1 8 2 1
Z-Value 2.33 2.33 2.33 2.33 2.33 2.33
Calculations Average
for 1 warehouse Weekly
Demand
Stdev of
Weekly
Demand
POU (weeks)
Q
Average Pipeline
Inventory
Begin on hand
SS
Average On Hand
Average Inventory
Total Average Inventory
(all warehouses)
Calculate the percentage savings in total average Inventory investment from warehouse consolidation for each product. Assume lead time stays constant at 1 week:
from 8 warehouses to 2 warehouses.
from 8 warehouses to 1 warehouse.
Take a simple average of the percent savings for each part and apply the resulting average percent savings to the entire North American finished goods (NA FG) inventory. Assume 2010 NA FG is $5 million. Calculate the total savings for the NA FG if:
8 warehouses are consolidated to 2 warehouses.
8 warehouses are consolidated to 1 warehouse.
Would savings from consolidation compensate for the expected increase in inventory of $1.5 million if:
8 warehouses are consolidated to 2 warehouses?
8 warehouses are consolidated to 1 warehouse?
Griffin 500ml Beaker Erlenmeyer 500ml Flask
2009 units sold 11,268 3,389
Percent of all units sold 0.1% 0.03%
Annual carrying cost (%) 14% 14%
Unit price $8.80 $9.50
Unit cost $3.96 $4.56
Cost of underage $0.48 $0.49
Cost of overage $0.021 $0.025
Optimal service level 95.8% 95.3%
Average bi-weekly demand
(8 warehouses) 54.2 16.3
Standard deviation of bi-
weekly demand
(8 warehouses) 21.4 10.9
Average bi-weekly demand
(2 warehouses) 216.7 65.2
Standard deviation of bi-
weekly demand
(2 warehouses) 38.3 19.5
Average bi-weekly
demand (1 warehouse) 433.4 130.3
Standard deviation of bi-
weekly demand
(1 warehouse) 51.0 26.0
Solved
Show answers
More tips
- F Food and Cooking Аэрогриль: Все, что нужно знать для подготовки здоровой и вкусной пищи...
- G Goods and services How to choose a washing machine?...
- F Family and Home Is it Worth Knowing the Gender of Your Child Before Birth?...
- H Health and Medicine Mercury Thermometer Danger: What to do when a thermometer breaks?...
- F Food and Cooking How to cook crayfish? Everything you need to know...
- G Goods and services LED-подсветка в LCD-телевизорах: 5 причин, почему она лучше других технологий...
- P Photography and Videography Understanding HDR: How It Works and Why You Need It...
- G Goods and services Which TV is better - LCD or Plasma?...
- S Sport How to Learn to Pull Up on Monkey Bars?...
- L Leisure and Entertainment Scrapbooking: What is it and Why is it Becoming More Popular?...
Answers on questions: Business
- M Mathematics Pls help because i don’t get it...
- M Mathematics 55 per cent of the students in a school are girls. What percentage of the students are boys? Find the number of students, if there are 216 boys...
- M Mathematics An airplane takes 3 3 hours to travel a distance of 1920 1920 miles with the wind. the return trip takes 4 4 hours against the wind. find the speed of the plane in still air...
Ответ:
thanks for poitns 10 points
Ответ:
wait can i ask somebody to help you
Explanation: