Managing uncertainty in supply chain safety inventory

in a Supply Chain: Safety Inventory (Ch. 12) Read Ch. 12 Note “NORMSDIST” in Figure 12-3 should be “NORMDIST” No late submission for Assignments 7, 8, 9, and 10 Assignment 7 (Due 7/30, 11:59 PM) • Show calculations or attach Excel files to receive full credit - START EARLY • Question in the following slides • Similar to Examples 12-1, 12-2, 12-3 TECH 492/592 – Manufacturing Distribution Applications – Assignment 8 (Due 7/30, 11:59 PM) • Show calculations or attach Excel files to receive full credit - START EARLY • Question in the following slides • Similar to Examples 12-4, 12-5 – Assignment 9 (Due 7/30, 11:59 PM) July 23, 2019 • Show calculations or attach Excel files to receive full credit - START EARLY • Question in the following slides • Similar to Examples 12-7, 12-13 (12-3, 12-5) – Assignment 10 (Due 7/30, 11:59 PM) • Show calculations or attach Excel files to receive full credit - START EARLY • Question in the following slides • Similar to Example 12-9, 12-11, 12-12 Assignment 7 • Suppose Walmart, Assignment 8 • Suppose Walmart, – Sells Samsung Galaxy cell phones – Uses continuous review policy • Suppose for Galaxy cell phones at Walmart, – Sells Samsung Galaxy cell phones – Uses continuous review policy • Suppose for Galaxy cell phones at Walmart, – Average weekly demand is 1000 phones – Standard deviation of weekly demand is 400 phones – Lead time for the Samsung to replenish cell phones is 4 weeks – Average weekly demand is 1000 phones – Standard deviation of weekly demand is 400 phones – Lead time for the Samsung to replenish cell phones is 4 weeks • Samsung guarantees to deliver cell phones 4 weeks after cell phones are ordered • Questions • Samsung guarantees to deliver cell phones 4 weeks after cell phones are ordered • Questions Suppose that the reorder point (ROP) is 5000 phones and the lot size (Q) is 3000 phones – (7-1) What is safety inventory? – (7-2) What is cycle inventory? – (7-3) What is average inventory carried by Walmart? – (7-4) What is Cycle Service Level (CSL)? Now suppose that Walmart would like to achieve CSL of 0.99 – (7-5) What should the safety inventory (ss) be if Walmart wishes to achieve CSL of 0.99? – (7-6) What should ROP be if Walmart wishes to achieve CSL of 0.99? Suppose that the reorder point (ROP) is 5000 phones and the lot size (Q) is 3000 phones – (8-1) What is fill rate (fr)? Now suppose that Walmart would like to achieve fr of 0.99 when the lot size (Q) is 3000 phones – (8-2) What should the safety inventory (ss) be if Walmart wishes to achieve fr of 0.99? – (8-3) What should ROP be if Walmart wishes to achieve fr of 0.99? Assignment 9 • Suppose Walmart, – Sells Samsung Galaxy cell phones – Uses continuous review policy Assignment 10 • – Operates 400 stores – Sells Garmin GPS at $100 at each store • Suppose for Galaxy cell phones at Walmart, – Average weekly demand is 1000 phones – Standard deviation of weekly demand is 400 phones – Lot size (Q) is 3000 phones • • • Samsung guarantees to deliver cell phones 2 weeks after cell phones are ordered – (9-3) What should the safety inventory (ss) be if Walmart wishes to achieve CSL of 0.99? – (9-4) What should OUL be if Walmart wishes to achieve CSL of 0.99? Suppose at each Sam’s Club store, for Garmin GPS, – Average weekly demand is 50 units •