Rossum\'s Universal Robots produces a household assistant robot. It requires a c
ID: 356552 • Letter: R
Question
Rossum's Universal Robots produces a household assistant robot. It requires a complex motherboard, which is supplied by a subcontractor. The daily demand for the motherboards is 20 units per day, with a standard deviation during lead time of 5 units. The lead time for this item is 5 days. What should be the reorder point (rounded) if Rossum wants a 95% service level? What should be the reorder point (rounded) if Rossum wants a 99% service level? Question 3 3 pts Rossum's Universal Robots produces an upscale voice-activated robot toy, which also has a remote control. It generates $340 in revenue and costs Rossum $200 to manufacture. Those robots that are not sold during the peak holiday season will be subsequently sold at a discount of $170. The estimated demand for the upcoming holiday season is 29,000 units, with a standard deviation of 2,000 units. What would be the service level? (percent to 2 decimals) What would be the optimum stocking level? (round to nearest whole unit) If rumor of a competitive product causes Rossum to lower its price to $290, what would be the optimum stocking level? (round to nearest whole unit)Explanation / Answer
Overage cost Co= Purchase price – Salvage cost = 200 – 170 = 30
Underage cost Cu = Selling price – Purchasing price = 340 – 200 = 140
a) Service level = Cu / (Cu + Co) = 140/(140+30) = 0.8235
Service level = 82.35%
Z = 0.93 (Normsinv(0.8235) in excel)
b) Optimal stocking level Q = Mean + Z *Standard deviation = 29000 + 0.93*2000 = 30860
c)
Overage cost Co= Purchase price – Salvage cost = 200 – 170 = 30
Underage cost Cu = Selling price – Purchasing price = 290 – 200 = 90
Service level = Cu / (Cu + Co) = 90/(90+30) = 0.75
Service level = 75%
Z = 0.67
Optimal stocking level Q = Mean + Z *Standard deviation = 29000 + 0.67*2000 =$30340
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