# Supply Chain Sourcing Siqi Ma: EMMICO Case Study

Supply Chain Sourcing Siqi Ma: EMMICO Case Study 150 150 Affordable Capstone Projects Written from Scratch

Supply Chain Sourcing Siqi Ma
1
EMMICO Case Instruction
General Requirement
1. Case presentation
• Students will present this case on April 26th, 2018 in class
• Students can choose either work individually or pair with another student to do
the presentation. If you choose to work with another student, please notify your
instructor before April 19th, 2018.
• Students need to submit their presentation slides to Brightspace before 8 am April
26th, 2018.
• Each student/pair has 20 minutes to present and five minutes for Q & A.
2. Case analysis report
• Case analysis report is individual base. Even though you present the case with
another student, you have to work on the report individually.
• Case analysis report includes background of the case, problem identification, data
analysis with proper tables, model comparison, and recommendations.
• There is no face-to-face class on May 3rd, 2018. The case analysis report is due at
11:59pm, May 3rd, 2018.
Data Analysis
Continuous review model (Q, R) methodology
1. Assume that the demand follows (D, σD) the lead time (L, σL).
2. Time units: In order to keep data consistency, all units of time were converted to “day”
by using the assumption of first half year of 2015 = 119 working days.
3. Determine the safety stock in terms of units, pallet, and value
4. Determine the reorder point
5. Determine the optimal order size, # of packs, and EOQ with pack constraint
6. Determine the cycle stock in terms of units, pallet, and value
7. Determine the average stock level (cycle stock + safety stock) in terms of unit, pallet, and
value
8. Determine the maximum stock level
Max stock level= EOQ + Reorder point
9. Determine average inventory investment
Average inventory investment=Average stock level * unit cost
10. Determine the current fill rate
11. Determine the fill rate under continuous review model
= 1 −
∗ (, 0,1,0) − ∗ (, 0,1,1)

: Standard deviation of lead time demand
: Safety stock
: Optimal order quantity
12. Determine # of orders
Supply Chain Sourcing Siqi Ma
2
Periodic review model (order-up-to-level) methodology
The period model assumes that the review period is fixed as five working days
1. Assume that the demand follows (D, σD) the lead time (L, σL).
2. Time units: In order to keep data consistency, all units of time were converted to “day”
by using the assumption of first half year of 2015 = 119 working days.
3. Determine the safety stock in terms of units, pallet, and value
= ∗ : ∗ <
= + = ∗ @
=
4. Determine the order quantity, # of packs, and order quantity with pack constraint
Avg. order quantity=Daily demand*5
5. Determine the cycle stock in terms of units, pallet, and value
6. Determine the average stock level (cycle stock + safety stock) in terms of unit, pallet, and
value
7. Determine the maximum stock level (OUL)
Max stock level= Demand*(5+lead time) +SS
8. Determine average inventory investment
Average inventory investment=Average stock level * unit cost
9. Determine the current fill rate
10. Determine the fill rate under continuous review model
= 1 −
∗ (, 0,1,0) − ∗ (, 0,1,1)

: Standard deviation of lead time demand
: Safety stock
: Optimal order quantity
Presentation Guideline
The presentation at least has the following components:
1. Background
2. Problem identification. According to the above analysis, students need to identify various
problems that the company is facing
3. Model comparison. Students need to identify relevant parameters and compare those
relevant parameters under three models: minimum order quantity (MOQ) model that the
company is current using, continuous review model, and periodic review model
4. Recommendation.
Note: Those four components are the minimum requirement in the presentation. Please feel free
to play with the data and add any relevant information in your own presentation.

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