Homework Assignment #2 (100 Points) Due: Thursday Nov g (in class) RBS Company\'
ID: 362245 • Letter: H
Question
Homework Assignment #2 (100 Points) Due: Thursday Nov g (in class) RBS Company's top selling item is a Pen Set. RBS Company expects to sell 100 Pen Sets per month for the next 12 months. RBS Company purchases the Pen Sets from a supplier for $25 dollars each, and incurs a cost of $50 dollars for each order that they l place. RBS Company estimates that their inventory carrying cost is 20% annually, what 1 is RBS Company's EOQ for the Pen Sets? (round to the nearest whole number) Ordres Anuea olume See Chapter 4 Slide Deck Carrying Cost x Unit Cost Reference Textbook Chapter 4 pages 117-119 EOQ Calculate RBS Company's Reorder Point including safety stock for the Pen Sets given the following information; Demand (D) is 100 Pen Sets per month. Lead Time (LT) from Supplier X is 15 days. Safety Stock (SS) is 10 Pen Sets. See Chapter 4 [Reference Textbook pages 114-115] The RBS Company currently buys their supplies from Supplier X which presently has a supplier score of 85.0. The RBS Company is now considering buying from Supplier Y. 2 (A) Calculate Supplier Y's supplier score using the data below. ruoeppliex or Supplier Y? Performance Measure Quality Delivery Cost 3 10 Points Weight 0.50 0.10 0.30 0.10 Supplier Y Rating 80 90 85 95 ResponsivenessExplanation / Answer
Ordering Cost = $50
Annual Volume = 12*100= 1200
Cost of each Pen = $25
Holding Cost = .25*25
Putting The values in EOQ formula given in the question:
EOQ= 138.5641= Approx 139
Reorder Point (ROP) = Average Monthly Demand* Lead Time + SS
ROP= 100*15/30+10=60 Units
Based on Score Supplier X is better option to go with.
Performace Measure Suppliers Ratings Weight SR*Weight Quality 80 0.5 40 Delivery 90 0.1 9 Cost 85 0.3 25.5 Responsiveness 95 0.1 9.5 Supplier Score (Sum of individual SR*Weight) 84Related Questions
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