You have been tasked to manage the imentay at your company. blur boss thinks that memory management is out of coned. but is not sure and wants you to perform scene analysis of the nventory and provide Wm with some data. Tit chart list you current stack annual volumes. and unit cost.
Item Stock Number Stock. Volume and Unit Cost Annual Voltam Unit Cost 13595 9500 SS 32514 9030 $15 22010 3E00 $650 14851 2400 $330 15242 10X/ 5500 10252 100 53.500 16325 950 5900 12564 500 5190 13584 450 5200 12547 190 $220
Complete the steps in each sectionand then30SM your amignment for ;fading.
Inns xi I …coup. Al
– Step 1: Conduct an ABC Analysis
Use Excel OM ad the chart to cood.kt an ABC analysis to demmine vAlich category each of the pans falls Mo. Provide analysis and interpretation of the result.
In the Excel 004 schwa the default Percent of dotter volume forA keno k 75%. however. it has been determined by your boss that he wouldl4ce to see the data for the A items set at acm
Click on Step 2 to continue…
Use Excel Ohl tocalculate the EOC? and the reorder poke for part number 32514 (check reorder point and graph when setting up the software).
The lead time to reorder parts is 30 days. The set up/cedering cost is 51400 per order. and the hotting cost is fixed at $125 per month Ihne be card ul here). The factory run 365 days per year. and the company wants to maintan a safety suck of 50.
Ftoykle thahnis and inters-radon of the results.
Click en Step 3 to <aflame
– Step 3: Calculate Safety Stock
In km 2. you were given the safety stock of 50:however. this can be abut:seed for a more accurate number. Assume that the average doily demand for part mother 32514 is 30 with a standarddm:aeon of 2 parts per day. If the company want to make sure that they do not stockout more than 5%d the erne. then what level of safety stock should they hold?
As part of your analysis of these results. how does the safety suck calculated here compare to the safety stock requirement in step 2?
To calculate the safety stock the Excel OM and the Safety Stack (Normal Dinritutian)speezdtheet Input your data into column 14 of the model titled Modet Day Demand and its standard deviation Oven.
Click on Step 4 to continue…
Be sure to create only one spreadsheet – each actiMy should be on a sepzeam tab.
