Assignment task: Assume that Dell is to manufacture 64 types of laptops with four distinct components: screen, processor, memory, and hard drive. Under the disaggregate option, Dell designs specific components for each laptop type, resulting in 4 x 64 = 256 distinct components. Under the common-component option, Dell designs servers such that 1 single screen, 2 distinct processors, 4 distinct memory modules, and 4 distinct hard drives can be combined to create 64 laptop types. As there are 4 distinct memory modules and 4 distinct hard drives, the company decides to pair them up into just 4 sets (each set consist of 1 memory module and 1 hard drive) instead of the possible 16 combinations. Monthly demand for each of the 64 laptops is independent and normally distributed with a mean of 10,000 and a standard deviation of 2,500. The replenishment lead time for each component is 4 months.
Dell uses a continuous review policy and targets a CSL of 90 percent for its component inventory. Evaluate the safety inventory requirements with the use of component commonality. (Let takes NORMSINV(0.9) = 1.28)
1) What is the mean of monthly demand of screens that Dell needs to manufacture its 64 types of laptops?
2) What is the standard deviation of monthly demand of screens that Dell needs to manufacture its 64 types of laptops?
3) What is the standard deviation of demand of screens that Dell needs to manufacture its 64 types of laptops during the lead time (4 months)?
4) How many safety inventories of screens are needed?
5) What is the standard deviation of monthly demand of each of the 2 distinct processors that Dell needs to manufacture its 64 types of laptops?
6) What is the standard deviation of demand of each of the 2 distinct processors that Dell needs to manufacture its 64 types of laptops during the lead time (4 months)?
7) How many safety inventories of each of the 2 distinct processors are needed?
8) How many safety inventories of processors are needed in total?
9) What is the standard deviation of monthly demand of each of the 4 distinct hard drives that Dell needs to manufacture its 64 types of laptops?
10) What is the standard deviation of demand of each of the 4 distinct hard drives that Dell needs to manufacture its 64 types of laptops during the lead time (4 months)?
11) How many safety inventories of each of the 4 distinct hard drives are needed?
12) How many safety inventories of hard drives are needed in total?