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594afe175a2507619aa7cbfet be : READ ONLY - This is an older file format. To ma... LOGISTICS STRATEGY AND INVENTORY MANAGEMENT BUSNM11020/CRN 17955 COURSEWORK Part B (Analytical case study) ACME International manufactures and distributes soft drinks. Product A is delivered to the customers through a warehouse facility. The demand for product A is illustrated in Table Q1-1 where SKU's are packs of product A. Demand history over a planning period SAMPLE SALES SAMPLE 14 15 26 SALES (SKU's) 80 90 90 100 17 140 110 (SKU's) 1 100 2 2 80 3 3 70 4 60 80 6 6 90 7 7 120 8 8 110 9 100 10 110 11 130 12 120 13 100 Table Q1-1: Demand data for product A 18 19 20 21 120 70 100 22 130 23 24 110 25 90 Additionally, the replenishment lead time from the manufacturing plant to warehouse is characterised by some variability shown in the data in Table Q1-2 . Load time performance history SAMPLE SAMPLE ) LEAD TIME (days) 11 13 1 1 2 3 LEAD TIME (days 7 7 10 9 9 10 11 12 13 20 4 4 11 12 5 9 8 12 6 6 14 11 10 16 8 7 8 9 16 10 Table Q1-2: Lead time performance data. The warehouse manager aims to increase the service level for product A from 95% to 99% Additionally, he has to consider recent changes in the packaging of the drink packs, and he wants to fully utilise a new contract with a 3PL company where the replenishment transport cost covers use of two lorries, capable of carrying 8 pallets each. The new packaging allows 6 packs in each box and 13 boxes in each pallet (unit load). Assuming the following information: Projected yearly demand - Average daily demand * 250 days (in packs) Carrying cost = 20% of unit value Unit value at cost = 20 Ordering cost - 100 Calculate the additional annual cost on the warehouse operations following implementation of the new inventory policy? Your answer to this question should include A short introduction to the problem . Step by step explanation how you will solve this problem All the calculations involved in answering the questions A short discussion of the results and on the assumptions that you have adopted in employing methods to solve the problem (THIS COURSEWORK CONTRIBUTES 50% TOWARDS YOUR FINAL MARK) ) 10 5 5 Marks will be awarded as follows: : Calculate SD for demand/performance Calculate combined SD Calculate EOQ Adjust EOQ for transport Calculate safety factors Calculate costs / compare to budget Discussion / conclusions 5 15 5 5 Submission details will be posted on Myuws of 594afe175a2507619aa7cbfet be : READ ONLY - This is an older file format. To ma... LOGISTICS STRATEGY AND INVENTORY MANAGEMENT BUSNM11020/CRN 17955 COURSEWORK Part B (Analytical case study) ACME International manufactures and distributes soft drinks. Product A is delivered to the customers through a warehouse facility. The demand for product A is illustrated in Table Q1-1 where SKU's are packs of product A. Demand history over a planning period SAMPLE SALES SAMPLE 14 15 26 SALES (SKU's) 80 90 90 100 17 140 110 (SKU's) 1 100 2 2 80 3 3 70 4 60 80 6 6 90 7 7 120 8 8 110 9 100 10 110 11 130 12 120 13 100 Table Q1-1: Demand data for product A 18 19 20 21 120 70 100 22 130 23 24 110 25 90 Additionally, the replenishment lead time from the manufacturing plant to warehouse is characterised by some variability shown in the data in Table Q1-2 . Load time performance history SAMPLE SAMPLE ) LEAD TIME (days) 11 13 1 1 2 3 LEAD TIME (days 7 7 10 9 9 10 11 12 13 20 4 4 11 12 5 9 8 12 6 6 14 11 10 16 8 7 8 9 16 10 Table Q1-2: Lead time performance data. The warehouse manager aims to increase the service level for product A from 95% to 99% Additionally, he has to consider recent changes in the packaging of the drink packs, and he wants to fully utilise a new contract with a 3PL company where the replenishment transport cost covers use of two lorries, capable of carrying 8 pallets each. The new packaging allows 6 packs in each box and 13 boxes in each pallet (unit load). Assuming the following information: Projected yearly demand - Average daily demand * 250 days (in packs) Carrying cost = 20% of unit value Unit value at cost = 20 Ordering cost - 100 Calculate the additional annual cost on the warehouse operations following implementation of the new inventory policy? Your answer to this question should include A short introduction to the problem . Step by step explanation how you will solve this problem All the calculations involved in answering the questions A short discussion of the results and on the assumptions that you have adopted in employing methods to solve the problem (THIS COURSEWORK CONTRIBUTES 50% TOWARDS YOUR FINAL MARK) ) 10 5 5 Marks will be awarded as follows: : Calculate SD for demand/performance Calculate combined SD Calculate EOQ Adjust EOQ for transport Calculate safety factors Calculate costs / compare to budget Discussion / conclusions 5 15 5 5 Submission details will be posted on Myuws of

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