Optimization inventory | AD680 | Boston University

You have been hired by a vendor who is preparing for an upcoming K-Pop (Korean pop music) concert featuring the singer IU (Lee Ji-eun) in Cincinnati. The concert organizer is allowing vendors to sell IU paraphernalia. You determine that certain one-size-fits-all winter hats featuring IU’s image will be sold. You have four choices for OEM suppliers of the hats. Due to their locations, their lead times differ, along with your costs. Based on past concerts, the product sales forecast is for 3000 hats, but this estimate is uncertain depending on the concert attendance. Each hat will sell for $32. Once the concert ends, products not sold will be bought by a discounter at a heavily reduced price of $2.40 per hat. Sales forecasts will be more accurate as the concert approaches (forecast CV’s are available based on past forecasting performance). Production quality varies according to location, which is expressed as an expected production yield. Production costs are adjusted to account for these yields (and shown below as net product cost). Because the products all require careful handling, there will be an inventory holding cost that will apply as soon as the order is placed. However, the annual holding percentage is unknown at this time. The table below summarizes the important information regarding the locations under consideration.

Create a spreadsheet that determines, for each manufacturing location, the expected profits and how many units the vendor should order from each manufacturer. Assume that demand variation is normally distributed. Vary the annual holding cost percentage and show how the expected profits and order quantities for a range of holding rates from 10% to 40%. Show these results in tabular and graphical form. Clearly organize and label the spreadsheet to show inputs and results (i.e., a user may wish to modify inputs later as more information becomes available). The assessment of this work will be based on the accuracy and clarity of your spreadsheet.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more