A production company A, made JITD strategic alliance with a distribution company B. The content of alliance is,
Company A executes work for company B's inventory management and all the inventory cost caused from B is responsible on A.
The decision for inventory replenishment is made on every Saturday,
Order amount is arrived every Sunday night after the delivery process from A to B.
The amount of starting inventory is 50 at Week 0
Inventory holding cost: 1,000 won/week per unit
When the shortage incurred, it is taken care of as Backorder, not as lost-sale. Backorder cost : 2,000 won/week per unit. When the backorder incurs, next week shall meet them with new demand.
Inventory replenishment happens when the inventory level is less than 19, and the amount of inventory to be refilled is calculated as "50-current inventory level".
Transportation cost: 50,000 won per every delivery
If the total number of demand met - the total number of Backorder is more than 131, the incentive, 20,000 won per unit is given to A.
Following table shows weekly demand of 'B' company for last 8 weeks. Please answer based on the information given above. All the cost is calculated from week 1.
|
Week
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0
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
Total
|
|
Weekly demand
|
|
15
|
20
|
10
|
15
|
30
|
20
|
5
|
35
|
150
|
|
Demand met
|
|
|
|
|
|
|
|
|
|
|
|
Inventory level
at the end of Week
|
50
|
|
|
|
|
|
|
|
|
|
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Holding cost
|
|
|
|
|
|
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|
|
|
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Shortage cost
|
|
|
|
|
|
|
|
|
|
|
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Amount of Inventory to be replenished
|
|
|
|
|
|
|
|
|
|
|
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Transportation cost
|
|
|
|
|
|
|
|
|
|
|
(1) How much inventory does company A replenish for the first time?
(2) How many times does company A replenish inventory for 8 weeks?
(3) How many times does company B experience inventory shortage for 8 weeks?
(4) How many demands of company B were met for 8 weeks among 150?
(5) How much does company A have to pay for total shortage cost for 8 weeks?
(6) Company A would experience (More profit or Loss of profit), and the amount would be _______________ won. [Note: Total expense company A = holding cost+ shortage cost+ transportation cost. If the total expense is lower than the total incentive company A would receive, we consider "More profit". Otherwise we consider it as "Loss of profit"]