Order Description
Not sure of the costing, there is some calculations and a research question, pls advise
Supply Chain Management
Question 1. (Allow 3 pages for answers)
The following table lists the weightings representing the relative importance of factors for the location of a retail site. Four potential sites have been given a score out of 100 for each factor:
Site
Factor Weight A B C D
Construction cost 0.1 90 60 80 70
Operating cost 0.1 90 80 90 85
Population density 0.4 70 90 80 75
Convenient access 0.2 75 80 90 90
Ranking area 0.2 60 70 85 75
Rank the four sites in order of their total weighted points score for suitability for the proposed location.
Question 2. (Allow 3 pages for answers)
Here are 2 years of quarterly data on demand for cement from a retailer.
Quarter Year 1 Year 2
1 218 257
2 119 110
3 138 156
4 199 201
a) Deseasonalize the data with four-quarters moving average (for center of data from 2.5 to 6.5), and compute a regression equation for the trend in demand
b) Compute the average seasonal index for each of the four quarters of a year.
c) Using the trend and seasonal indices you have developed, compute a forecast for the demand in each of the quarters of the following year.
Question 3. (Allow 3 pages for answers)
Explain the basic strategies that an aggregate planner has available to balance the various costs and meet demand
Question 4. (Allow 4 pages for answers)
Alien Auto Co. distributes parts for foreign cars in a large Midwestern city. Demand for a particular size of oil filter has been uniform. The lead time to obtain the filters is 1 month, and the average use rate is 500 per month. The lead-time use is normally distributed with a standard deviation of 70 units. Order cost is $12, and holding cost is $0.30 a year per filter. The estimated cost of a stock out is $10.
a. What is the EOQ?
b. How many orders per year will be placed at this EOQ?
c. What is the optimum probability of a stock out?
d. What is the optimum reorder level? Note: The Z value for a service level of 99.65% is 2.7
e. How much will Alien Auto spend per year to hold inventory on this filter if it implements the values you determined above?
Reference/s
Chopra, S & Meindl, P 2016, “Supply Chain Management: Strategy, Planning, and Operation”, 6th edition, Global edition, Pearson Education Ltd, Harlow, England
Amer, Y 2016, Supply Chain Management, Course Notes for LSCM 5043
