Chat with us, powered by LiveChat Need help with maximart case study. Questions listed below. | Wridemy

Need help with maximart case study. Questions listed below.

Question Description
The inventory manager of Maximart Sales wants to establish optimum ordering policies. Weekly demand for a particular item follows a normal distribution with a mean of 300 units and a standard deviation of 70 units. The supplier will sell Maximart up to 999 units in an order at a price of $100/unit. If Maximart orders between 1000 and 3999 units per order, they can get the product for $95/unit. If Maximart is willing to order 4000 or more units with each order, they can get the product at $90/unit. Maximart sells the item for $200 per unit.

It costs Maximart $125 to place an order, and $0.60 to hold a unit of inventory from one week to the next. The lead time between placing an order and receiving it, inspected and ready for sale, is two weeks.

When demand cannot be satisfied from stock, some customers are willing to accept back order, and wait another week or two for delivery. Other customers will not wait. The percentage of customers who are willing to accept a backorder varies uniformly between 10% and 50%. Maximart estimates that they will lose $60 in future profit from each lost sale.

The current inventory policy is an order quantity of 4000 units, to take advantage of the quantity discounts. Further, the inventory manager has also set the reorder point at the average weekly demand, 300 units. An order will be placed in any week for which the ending inventory is less than the reorder point, provided that there is not already an outstanding order from the previous week.

a.Simulate 40 weeks of operation. Assume that the inventory at the beginning of week 1 is 1000 units. Provide a breakdown of the average net profit and the average weekly costs for ordering, holding, lost future profits, and average total weekly costs.

b.Repeat part a. with an order quantity of 1000 units and a reorder point of 700 units.

c.Using the results from part a. and b. investigate a couple other combinations of reorder point and order quantity, in an attempt to determine the combination of the two that will lead to the greatest profit. Report your recommendations.

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.

Do you need an answer to this or any other questions?

About Wridemy

We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.

How It Works

To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Are there Discounts?

All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.

Hire a tutor today CLICK HERE to make your first order

Related Tags

Academic APA Writing College Course Discussion Management English Finance General Graduate History Information Justify Literature MLA