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February 11, 2021

I am having trouble with Q and ss. I am not sure how to get std. dev of aggregate demand or if i am using the right formulas for each scenario. If you have experience with supply chain management and statistics Please Help if not please leave it for someone who does. Thank you very much
Current Ordering vs. Joint Ordering vs. Single Source Current Ordering ABC Coffee imports beans and sells them online (52 weeks per year). Roast to Order business model. Ships roasted beans directly to its roasting facility within 24 hours after an order is placed. ABC Coffee selltwo prducts (PI) Medium Roast from Indonesia and (P2) Dark Roast from Philippines. Beans are delivered to its roasting facility in Illinois in one pound bags from suppliers in Indonesia and Philippenes. A bag of Coffee cost $400 per bag. Weekly Demand (Independent) PI-Demand (D) and (ơn): 100 bags per week with a standard deviation of 40 bags per week P2 – Demand (D) and (oo) 25 bags per week with a standard deviation of 10 bags per week PI-Inventory Holding (H) : $40 per bag per year or ( 1 0% of product cost) P2-Inventory Holding (H)-S40 per bag per year or ( 10% of product cost) Uses CONTINOUS REVIEW POLICY and Lot Size (Q) is Calculated using (EOQ) PI-Cycle Service Level (CSL)-0.99 P2 – Cycle Service Level (CSL)-0.99 P1 – Replenishment Lead Time (L) and 4 weeks with standard deviaiton (Su) of 2 weeks from Indonesia P2 – Replenishment Lead Time (1) and 4 weeks with standard deviaiton (S) of 2 weeks from Phillipennes P1 – Fixed Ordering Cost (S) $200 per Order P2 – Fixed Ordering Cost (S)-s200 per Order P2 – Dark Roast. Phillipenes 1)-25 per week. σο_ 10 per week. 11-S40 per year or 10% CSL = 0.99 L-4 weeks. Si-2 weeks. S S200 per order P1-Medium Roast, Indonesia 1)-100 per week. ơpe 40 per week. H-$40 per year or 10% CSL-0.99 L-4 weeks. Si. 2 weeks. s $200 per order Current Ordering 1. 2. What is Lot Size for each coffee (Q)? What is Safety Inventory fopr each coffee (ss)? Joint Ordering If Fixed Ordering Cost is now S300 and Inventory Replenishment is 4 weeks with a Standard Deviation of 2 weeks for Jointly delivering products from Indonesia and Phillipennes. What is Lot Size for Each Coffee (Q)? Calculated with Joint Ordering Formula What is Saftey Inventory For Each Coffee? 3. 4. Single Source If ABC Coffee now only sources from Indonesia and seperately roasts them to medium and Ordering Cost is now S200 and Inventory Replenishment Lead Time is 4 weeks dark. Fixed with a standard deviaiton of 2 weeks. 5. What is Lot Size (Q) from supplier to roating facility? 6. What is saftley inventory (s)at rousting faciliy? Current Ordering Figure 1 CURRENT ORDERING facihty Medium roast (P) t0ark roast (2) IndonesiaPhippines Joint Ordering Figure 2 Joint Ordering faclity Medium roast (P1) Dark roast (P2) Indonesia Philippines Single Source Figure 3 Single Source Roasting faciity Medium roast P3) Dark roast (p2) indonesia 2) ss= NORMS INV(cs), σ a15:407 ss= NoAm51NVG99).ais.니ㅇ 7(Solt) aoo 300 4 0 79.285 40 니。

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