Business, 03.11.2020 17:20 tiffanibell71

(26 pts) Motorola obtains cell phones from its contract manufacturer located in China to serve the U. S. market. The U. S. market is served from a warehouse located in Memphis, Tennessee. Daily demand at the Memphis warehouse is normally distributed, with a mean of 5,000 and a standard deviation of 4,000. The warehouse aims for a CSL of 99 percent. The company is debating whether to use sea or air transportation from China. Sea transportation results in a lead time of 36 days and costs $0.50 per phone. Air transportation results in a lead time of 4 days and costs $1.50 per phone. Each phone costs $100, and Motorola uses an annual inventory holding ratio of 20 percent. a) What reorder point and safety inventory should the warehouse aim for when using sea or air transportation

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(26 pts) Motorola obtains cell phones from its contract manufacturer located in China to serve the U...

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