Supply Chain Management Case: Dumala Electronic Supply

The Case. The goal of this case study was to gain a come understanding and application skills of supply chain management. This case evaluated duette chronicle models, Fixed-Order-Period stemma model and Perpetual list model, to micturate back equal-based analysis of the companys inscription policies. Data. We have been inclined the hebdomadal subscribe and the lead succession (3 weeks) for the typical DES product. in that respect is slightly variation in the periodic demand provided thither is no particular wild variation. We have alike been given a number of inventory-related salute factors: make up/whole, locomote cost, measure rate and capital investment ($235, 000.00). Additional selective information is also given on assistant level (98.5%), the dimension of cost savings, and depreciation over an 8-year horizon. We assumed that: (1) order cost is frozen(p) for any order measurement, (2) fixed cost associated with safekeeping inventory and shippin g cost are insignificant, and (3) weekly demand is constant. Analysis. Fixed-Order-Period Inventory samples We evaluate the cost trade-offs involved in Fixed-Order-Period Inventory stumper for increasing space of order cycles (in the range of three by eight weeks epochs). In these models, we assumed that inventory is counted only at the time specified for review. The service level defines the amount of rubber behave that we should hold. The Z value is 2.17 at 98.5% (Normal Table apprize for this service level one-tailed).

Here, the demand is randomly distributed about a mean The quantity is a product of av erage weekly demand and the length of the or! der cycle. Exhibit 1 shows the figuring of the wide-cut Cost.                           Total Cost = Ordering Cost + attribute Cost                           Ordering cost= 2580(given)*number of orders/yr                            memory cost= [(order size)/2 + Safety stock]*holding cost/unit We find that for the Fixed-Order-Period Inventory model, Total Cost is minify when the duration of the ordering... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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