Calopeia

Calopeia - Calopeia The strategy The main strategy for this...

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Calopeia The strategy The main strategy for this region is deploying ‘Lean Processes’ that we would like to minimize the cost at low as possible and utilize the capacity of the machine. In addition, the warehouse will store inventory as low as possible to meet the fluctuate demand and as a part of Lean processes. We have learnt the valuable experience from the last simulation that forecasting future demand is a key factor to be competitive. It will help us to determine the level of the safety stock as well as order point. For inventory, we will order the quantity with the level of 200 units to fulfill the maximum capacity of a truck and this refers that the level of inventory in the warehouse will be keep at 200 units to cut inventory aging. To minimize the cost for this region, we will save the cost of $75 per drum thru using a truck. Summary During the first period Day 1-731, this region faced lost demand of 47% of the total demand, but the machine did not fully utilize. The key issue was that the manager did not
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This note was uploaded on 09/08/2009 for the course OM 522 taught by Professor 123 during the Spring '09 term at Alabama.

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Calopeia - Calopeia The strategy The main strategy for this...

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