1. Mr. Busfield recently completed a course in logistics management and now realizes that there are significant costs associated with ordering and maintaining inventory at his distribution center. Mr. Busfield has learned that the EOQ is the replenishment logic that minimizes these costs. In an effort to find the EOQ for measuring cups, Mr. Busfield has gathered relevant data. Mr. Busfield expects to sell 44,000 measuring cups this year. Hogan acquires the measuring cups for 75 cents each from Shatter Industries.
2. Mr. John Estes oversees the distribution of Tastee Snacks products from the plant ware-house to its two distribution centers in the United States. The plant warehouse currently has 42,000 units of the company s most popular product, Chocolate Chewies. Mr. Estes retains 7,000 units of the product at the warehouse as a buffer. The Cincinnati DC has an inventory of 12,500 units and daily requirements of 2,500 units. The Phoenix DC has an inventory of 6,000 units and daily requirements of 2,000 units.
a. Determine the common days' supply of Chocolate Chewies at each DC.
b. Given the above information and your answer to part (a), use fair-share-allocation logic to determine the number of Chocolate Chewies to be allocated to each DC.
3. Scorekeeper, Inc., manufactures stadium scoreboards. Illustrates the demand for Scorekeeper's scoreboards over the past 25 days. The mean of the daily demand is 6 units.
a. Is the demand distribution normal? How do you know?
b. Calculate the standard deviation for daily demand. Assume in this case that the performance cycle is constant.