# >supply chain resource planning (operations managementQuestion 1 Based on the following historical data determine the optimal order quantity safety stock and reorder point for a perpetual system cost of placing an order = \$29 annual carrying charge = 17% warehouse capacity = 1000 units value of an item = \$400 annual demand for the item = 2475 units number of operating days in a year = 360 stockout cost per unit = \$29 average lead time = 8 days standard deviation of lead time = 4 days standard deviation of daily demand = 3 units distribution of demand during lead time = normal Briefly explain how this system would work in a company Question 2 As part of an annual evaluation of its four suppliers of xyz a firm gathered data on three criteria: on-time delivery percent defective and error-free order fulfillment. On-time performance was assigned a rating of 60%; percent defective was assigned a rating of 30%; and error-free fulfillment was assigned a rating of 10%. The data collected over the past year is given below: Based on the firm’s criteria if the weighted point approach is used which supplier performed best? If the dominant characteristic approach is used which supplier performed best? question 3 Each year a firm purchases 1000 cases of SKU wxy. The cost to place an order is \$130 the lead time is 12 days (there are 365 operating days in a year) and the annual inventory carrying charge is 25%. The supplier has the following price schedule: If an all units quantity discount is in effect what should the order quantity and associated total costs be? What is the average price paid per case at this order quantity?

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