Tesla Marketing forecasts the sales of its cars for the next five quarters as

Tesla marketing forecasts the sales of its cars for

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3 Tesla Marketing forecasts the sales of its cars for the next five quarters as follows below. The forecast provides the demand share between the two Tesla models and the total cars forecasted for the family. Forecast Quarter 1, 2014 Quarter 2, 2014 Quarter 3, 2014 Quarter 4, 2014 Quarter 1, Tesla Model 60 70% 60% 50% 40% Tesla Model 85 30% 40% 50% 60% Total Units Sales (# of Cars) 7,500 9,750 BP’s 8,000 11,200 BP’s8,600 12,900 BP’s9,300 14,880 BP’s10,000 17,000 BP’sTesla Marketing also provided a forecast for individual replacement battery pack sales is: Forecast Quarter 1, 2014 Quarter 2, 2014 Quarter 3, 2014 Quarter 4, 2014 Quarter 1, 2015 Forecasted Sales of Replacement Battery Packs 2,400 2,700 3,000 3,400 3,800 1.(5 Points)What is the total requirement for battery packs for each quarter of 2014 that Tesla should receive from Panasonic in Japan? Insert your responses in the matrix below and explain your answer in the space provided. 2015 30% 70%
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4 2.(3 Points)What is the forecasted dependent demand for battery packs to be received by Tesla in the second half (quarters 3 and 4) of 2014? 3.(3 Points)What is the forecasted independent demand for battery packs to be received by Tesla in Quarter 1, 2015? 4.(5 Points)Using the total number of projected battery packs to be received by Tesla in 2014 (in your response to #1 above), calculate an Economic Order Quantity (EOQ) for the battery packs. 5.(5 Points)In consideration of the re-order point ordering process already in use, and the EOQ you calculated in # 4. above, explain how the ROP and EOQ should be used by Tesla’s Inventory Management (IM) team in their planning. Be specific with your explanation.
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5 6.(5 Points)What is Tesla’s total annual inventory cost (holding costs and order costs) for battery packs? Be sure to consider safety stock in your response. 7.(7 Points)Tesla’s CEO, Elon Musk, is troubled that recently Tesla has had occasional shortages of the Battery Packs, even after he directed his staff to achieve a 99% service level. Does the IM Team’s current process support such a service level? If yes, show your analysis and reasoning clearly below. no, suggest changes to IM’s process to achieve the 99% service level, again using sound analysis and reasoning in your answer. If
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