o RIMOWER company has been in the Cosmetic industry for 10 years. They sell in Spain market only. They have 100 employees. They sell
2.100.000 units on average per year. This year, they expect the demand to raise 12% due to COVID19 constrains reduction. It takes 0.7h for a
normal employee to process an order and email it out to our suppliers. RIMOWER has a factory and warehouse with very tight space to produce
current demand, so we need to manage space and shipments and deliveries very careful. We are lucky we have a good agreement with the
transport company and for a dedicated truck we only pay 2.5€/Km (whatever the number of units we order). Holding stock, cost us 5€ a year
Last week RIMOWER commercial Director went to negotiate new prices with their only one supplier that is 500Km far from our
factory/warehouse, and I could get a new price per unit of 4€/unit. Labor cost is 20€/h flat rate in all the areas and employees in the company. As per the EOQ model, please calculate Quantity to order, expected number of orders they should place during the year, optimal time
between orders and the Total Cost.
o Historical RIMOWER sales are as per following chart. Please decide which would be the best 2022 forecast by using the following two calculation
models: Moving Average (4years) and Weighted Moving Average (2 years, 0.25 year 1 and 0.75 year 2). For both cases, please disregard 2020
sales due to COVID reasons. Please attach excel with calculations and explanations.
o Among the Industry 4.0 technologies we shared in class, what would you use in each of the following models to reduce
risks? Anticipatory model Responsive model Postponement model
Sample Solution
