Discuss the below:
The Service Level for company KT is going to be set at 95%.
Come up with the data by using the EOQ model and find Variable Lead Time & Demand. (This will get you to the reorder point and safety stock levels number)
| Order Date |
QuantityLFT |
Quantity lbs |
Delivery Date |
Raw Material1 |
Raw Material2 |
Raw Material3 |
Raw Material4 |
Raw Material5 |
| 12/22/2015 |
0 |
0 |
|
0 |
0 |
0 |
0 |
0 |
| 1/7/2016 |
6,000 |
260 |
1/15/16 |
130 |
0 |
0 |
130 |
0 |
| 1/14/2016 |
42,000 |
1820 |
1/22/2016 |
910 |
0 |
0 |
910 |
0 |
| 1/21/2016 |
66,000 |
2860 |
1/29/2016 |
1430 |
0 |
0 |
1430 |
0 |
| 1/28/2016 |
18,000 |
780 |
2/5/2016 |
390 |
0 |
0 |
390 |
0 |
| 2/4/2016 |
30,000 |
1300 |
2/12/2016 |
650 |
0 |
0 |
650 |
0 |
| 2/11/2016 |
30,000 |
0 |
2/19/2016 |
0 |
0 |
0 |
0 |
0 |
| 2/18/2016 |
18,000 |
0 |
2/26/2016 |
0 |
0 |
0 |
0 |
0 |
| 2/25/2016 |
6,000 |
260 |
3/4/2016 |
130 |
0 |
0 |
130 |
0 |
| 3/3/2016 |
24,000 |
1040 |
3/11/2016 |
520 |
0 |
0 |
520 |
0 |
| 3/10/2016 |
0 |
0 |
|
0 |
0 |
0 |
0 |
0 |
| 3/17/2016 |
18,000 |
0 |
3/24/2016 |
0 |
0 |
0 |
0 |
0 |
| 3/24/2016 |
6,000 |
0 |
4/1/2016 |
0 |
0 |
0 |
0 |
0 |
| 3/31/2016 |
18,000 |
780 |
4/8/2016 |
390 |
0 |
0 |
390 |
0 |
| 4/7/2016 |
18,000 |
780 |
4/15/2016 |
390 |
0 |
0 |
390 |
0 |
| 4/14/2016 |
18,000 |
780 |
4/22/2016 |
390 |
0 |
0 |
390 |
0 |
| 4/21/2016 |
18,000 |
780 |
4/29/2016 |
390 |
0 |
0 |
390 |
0 |
| 4/28/2016 |
12,000 |
520 |
5/6/2016 |
260 |
0 |
0 |
260 |
0 |
| 5/5/2016 |
72,000 |
3120 |
5/13/2016 |
1560 |
0 |
0 |
1560 |
0 |
| 5/12/2016 |
36,000 |
1560 |
5/20/2016 |
780 |
0 |
0 |
780 |
0 |
| 5/19/2016 |
54,000 |
2340 |
5/27/2016 |
1170 |
0 |
0 |
1170 |
0 |
| 5/26/2016 |
30,000 |
1300 |
6/3/2016 |
650 |
0 |
0 |
650 |
0 |
| 6/2/2016 |
18,000 |
780 |
6/10/2016 |
390 |
0 |
0 |
390 |
0 |
| 6/8/2016 |
30,000 |
1300 |
6/17/2016 |
650 |
0 |
0 |
650 |
0 |
| 6/16/2016 |
18,000 |
780 |
6/24/2016 |
390 |
0 |
0 |
390 |
0 |
| 6/22/2016 |
18,000 |
780 |
7/1/2016 |
390 |
0 |
0 |
390 |
0 |
| 6/29/2016 |
42,000 |
|
7/8/2016 |
0 |
|
|
0 |
|
| 7/6/2016 |
42,000 |
1820 |
7/15/2016 |
910 |
0 |
0 |
910 |
0 |
| 7/8/2016 |
12,000 |
520 |
7/15/2016 |
260 |
0 |
0 |
260 |
0 |
| 7/14/2016 |
6,000 |
260 |
7/22/2016 |
130 |
0 |
0 |
130 |
0 |
| 7/21/2016 |
24,000 |
1040 |
7/29/2016 |
520 |
0 |
0 |
520 |
0 |
| 7/28/2016 |
0 |
0 |
|
0 |
0 |
0 |
0 |
0 |
| 8/4/2016 |
30,000 |
1300 |
8/12/2016 |
650 |
0 |
0 |
650 |
0 |
| 8/12/2016 |
30,000 |
1300 |
8/19/2016 |
650 |
0 |
0 |
650 |
0 |
| 8/18/2016 |
48,000 |
2080 |
8/26/2016 |
1040 |
0 |
0 |
1040 |
0 |
| 8/25/2016 |
60,000 |
2600 |
9/2/2016 |
1300 |
0 |
0 |
1300 |
0 |
| 9/1/2016 |
42,000 |
1820 |
9/9/2016 |
910 |
0 |
0 |
910 |
0 |
| 9/8/2016 |
18,000 |
780 |
9/16/2016 |
390 |
0 |
0 |
390 |
0 |
| 9/15/2016 |
42,000 |
0 |
9/23/2016 |
0 |
0 |
0 |
0 |
0 |
| 9/22/2016 |
42,000 |
1820 |
9/30/2016 |
910 |
0 |
0 |
910 |
0 |
| 9/29/2016 |
12,000 |
0 |
10/7/2016 |
0 |
0 |
0 |
0 |
0 |
| 10/6/2016 |
24,000 |
1040 |
10/14/2016 |
520 |
0 |
0 |
520 |
0 |
| 10/13/2016 |
24,000 |
1040 |
10/21/2016 |
520 |
0 |
0 |
520 |
0 |
| 10/20/2016 |
48,000 |
2080 |
10/28/2016 |
1040 |
0 |
0 |
1040 |
0 |
| 10/27/2016 |
42,000 |
0 |
11/4/2016 |
0 |
0 |
0 |
0 |
0 |
| 11/3/2016 |
66,000 |
2860 |
11/11/2016 |
1430 |
0 |
0 |
1430 |
0 |
| 11/8/2016 |
6,000 |
260 |
11/18/2016 |
130 |
0 |
0 |
130 |
0 |
| 11/17/2016 |
24,000 |
1040 |
12/2/2016 |
520 |
0 |
0 |
520 |
0 |
| 12/1/2016 |
30,000 |
0 |
12/9/2016 |
0 |
0 |
0 |
0 |
0 |
| 12/8/2016 |
30,000 |
0 |
12/16/2016 |
0 |
0 |
0 |
0 |
1 |
| 12/15/2016 |
42,000 |
0 |
12/22/2016 |
0 |
0 |
0 |
0 |
2 |
| Total |
1,410,000 |
47,580 |
|
23790 |
0 |
0 |
23790 |
0 |
|
|
|
|
|
|
|
|
|
| Average |
55,294 |
2396 |
|
|
|
|
|
|
| Standard Deviation |
194,260 |
8418 |
|
|
|
|
|
|
| Work Week |
5 |
|
|
|
|
|
|
|
| Lead Time (weeks) |
1 |