Question

Toyota has decided to set up regional warehouses where some variants of the Scion will be customized and shipped to dealers on demand. Customizing and shipping on demand will raise production and transportation cost per car by $100. Each car costs $20,000, and Toyota has a holding cost of 20 percent. Cars at the dealer are owned by Toyota for the first 90 days. Thus, for all practical purposes, Toyota owns all inventory, whether at the dealers or at the regional warehouse. Consider a region with five large dealers and 30 small dealers. Toyota has partitioned the variants into two groups-popular variants and uncommon variants. Weekly demand for the two types of variants in the two types of dealers is shown in Table. The goal is to provide a 95 percent cycle service level using a continuous review policy. Replenishment lead times for both dealers and regional warehouses are four weeks. Customization and shipping from a regional warehouse to a dealer can be done in a day, and this time can be ignored. Assume demand to be independent across all dealers.

Answer 1

Answer:

OK thanks for you information.

Your efforts are appreciated..