You are a planner at a small distribution warehouse.Historically,the warehouse has targeted fulfilling 10 orders per hour

INSTRUCTIONS TO CANDIDATES

ANSWER ALL QUESTIONS

It is important for you as a business manager to understand the basics of managing inventory and calculating total costs of supply chain activities. This assignment is geared toward that practical application and understanding. The problems should be done in a single Excel file showing all of your work.

This is an individual assignment; therefore you should do your own work – again, it is important for you to understand this aspect of business management and it pertains to your company and position. It is to be submitted through Turnitin on Canvas (which checks each assignment against all other assignments submitted). Make sure to proof-read your work.

Inventory

Best Bicycles produces bikes and buys brakes from a supplier in Japan. The brake set for one bicycle costs $125, and it is $35 to process the order with the supplier. The company consistently sells 50 bicycles a week (for 52 weeks of the year) and holds a safety stock of 1 week of brake sets to cover the constant lead time (1 week) from Japan. The company uses a holding/carrying rate of 25%.

1. What is the EOQ for the brakes (round your answer up to the nearest whole number)? (5 points)

2. What is the ROP for the brakes? (5 points)

3. What is the total annual inventory cost for the brakes? (10 points)

Assignment 2(continued): Statistics Refresher (25 points)

You are a planner at  a small distribution warehouse.Historically,the warehouse has targeted fulfilling 10 orders per hour for planning purposes. However, as the diversity of products has expanded, as well as the size of orders, this target has proven to be unreliable, as orders are continually behind schedule andcustomers are complaining about late deliveries. Your supervisor has tasked you with determining a better target so that the warehouse may provide better delivery estimates to customers for their orders. Over the past week you gathered data for the number of orders fulfilled each day. This data is shown in the following table.

Day	Monday	Tuesday	Wednesday	Thursday	Friday
Orders	88	64	72	56	80

A. Assuming 8 hours of operation each day, what is the mean and standard deviation for orders fulfilled per hour? The following table may help with these calculations. N is the total number of observations (days in sample) and 𝑌" is the mean orders per hour over the last week. Interpret the results. What could the new target be for orders per hour based on these results? (7 points)

Observation (Day)	Orders per hour (Y)	(𝑌"-Y)2
1 (Monday)	11	4
2 (Tuesday)	8	1
3 (Wednesday)
4 (Thursday)
5 (Friday)
Total

B. Although you found a new representative target for orders fulfilled per hour based on the mean over the last week, you feel that you can develop a better daily target by considering the average number of line items in each order. However, you first need to determine if there is a correlation between orders fulfilled per hour and line items per order. Use the following data and table to calculate the correlation coefficient and interpret the result. (7 points)

Day		Monday	Tuesday		Wednesday		Thursday		Friday
Line items		1056	1280		1008		1008		1200
Obs.	Line items per order (X)			Orders per hour (Y)		X2		Y2		XY
1	12			11		144		121		132
2	20			8		400		64		160
3
4
5
Total

C.     After determining that there is a correlation you decide to create a formula for the relationship so that you can estimate a target for orders fulfilled per hour based on the average number of line items per order. That way, you can provide customers with a more accurate estimate of time to ship. Using linear regression as a prediction tool, determine a formula for this relationship. 𝑋" is the mean line items per order over the last week. (7 points)

D. Using your above formula, estimate how many orders per hour you should schedule to fulfill in a day if there are an average of 16 line items per order. (2 points)

E. What other variables could you consider as part of a multiple regression analysis to improve this estimate? (2 points)

 

Attachments:

Related Questions

. The fundamental operations of create, read, update, and delete (CRUD) in either Python or Java

CS 340 Milestone One Guidelines and Rubric  Overview: For this assignment, you will implement the fundamental operations of create, read, update,

. Develop a program to emulate a purchase transaction at a retail store. This  program will have two classes, a LineItem class and a Transaction class

Retail Transaction Programming Project  Project Requirements:  Develop a program to emulate a purchase transaction at a retail store. This

. The following program contains five errors. Identify the errors and fix them

7COM1028   Secure Systems Programming   Referral Coursework: Secure

. Accepts the following from a user: Item Name Item Quantity Item Price Allows the user to create a file to store the sales receipt contents

Create a GUI program that:Accepts the following from a user:Item NameItem QuantityItem PriceAllows the user to create a file to store the sales receip

. The final project will encompass developing a web service using a software stack and implementing an industry-standard interface. Regardless of whether you choose to pursue application development goals as a pure developer or as a software engineer

CS 340 Final Project Guidelines and Rubric  Overview The final project will encompass developing a web service using a software stack and impleme