Supply Chain Activity - Day: 1

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COST ANALYSIS

DESCRIPTIONS

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Style Co. Ltd is a corporate company selling T-shirts, and makes use of a central warehouse and three retailers where the T-shirts are sold to consumers. Each retailer makes a request to the warehouse when ordering stock for running the business. It is also necessary for the warehouse to place orders with their supplier when necessary so that they can always provide stock to the retailers. Assume that you are the Purchasing Manager of the company and are responsible for placing orders with supplier and transport orders to the retailers when requested to do so. You are required to specify the time when orders should be placed and the quantity for each order so that the company can minimize the total cost of operation and to maximize the company profit. There is no limit on the number of times that you place orders with the supplier, but the maximum quantity that you can place is limited to 9,999 T-shirts per order. Note: You can only place an order either with the Warehouse or a Retailer when all the goods have arrived for the previous order from the Warehouse / Retailer. Each T-shirt costs $25 to purchase, plus a $150 for the transportation cost from Supplier to Warehouse per occasion. The Lead Time when the Warehouse places orders with the Supplier is 14 days. The Lead Time when a Retailer places orders with the Warehouse is 3 days. The selling price of a Tee-shirt at any of the Retailers is $39 per each. A handling charges is required for the transportation of T-shirts from the Warehouse to each Retailer, this costs $60 per occasion. In addition to the transportation cost specified above, there is a storage cost at both the Warehouse and each Retailer. This is $2.15 and $3.88 per Tee-shirt per year respectively. The daily demand for Tee-shirts at each of the retailers is not constant and varies from day to day.

Demand Settings

Uniform Distribution Poisson Distribution Apply