Supply Chain Management Case: Dumala Electronic Supply

The Case. The goal of this case study was to gain a promotion understanding and application skills of supply chain management. This case evaluated brace chronicle models, Fixed-Order-Period stemma model and Perpetual stock model, to gift back equal-based analysis of the companys inventory policies. Data. We have been inclined the periodic subscribe and the lead succession (3 weeks) for the typical DES product. at that place is slightly variation in the each week demand moreover thither is no particular wild variation. We have alike been given a number of inventory-related salute factors: monetary value/whole, graze cost, measure rate and capital investment ($235, 000.00). Additional info is also given on assistant level (98.5%), the proportion of cost savings, and depreciation over an 8-year horizon. We assumed that: (1) order cost is frozen(p) for any order measurement, (2) fixed cost associated with safekeeping inventory and shipping cost are insigni ficant, and (3) weekly demand is constant. Analysis. Fixed-Order-Period Inventory samples We evaluate the cost trade-offs involved in Fixed-Order-Period Inventory lay for increasing space of order cycles (in the range of three by eight weeks lengths). In these models, we assumed that inventory is counted only at the time specified for review. The service level defines the amount of safeguard behave that we should hold. The Z value is 2.17 at 98.5% (Normal Table place for this service level one-tailed).

Here, the demand is randomly distributed about a mean The quantity is a product of average weekly demand and the length of the order cycle. Exhibit 1! shows the reckoning of the wide-cut Cost.                           Total Cost = Ordering Cost + attribute Cost                           Ordering cost= 2580(given)*number of orders/yr                            retentivity cost= [(order size)/2 + Safety stock]*holding cost/unit We find that for the Fixed-Order-Period Inventory model, Total Cost is minify when the duration of the ordering... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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