ACIN113

Case Analysis
Week 7 - Group Summative Assessment

Identification of the Students Fecha: _____________________

Names

Expected learning

3. Develop management models for productive systems, under production standards, legal regulations and
sustainability for its application in productive and service systems.
Achievement indicators

3.1 They understand basic definitions of inventory management.

A coffee-loving entrepreneur opened his shop called 'ARTE LATTE'. In order for his coffee to be excellent, he needs
to rely on coffee beans imported from Brazil, where from the roasted and ground seeds it produces the best
Santiago café. Given its potential growth, the owner decided to establish the best inventory policy and collected the
next information:

The estimated demand for coffee bean consumption is 5 kg per day, and the café operates 5 days a week.
and the year has 52 weeks.
The unit price charged by the supplier is $15.000 per kg of coffee beans.
The weekly unit cost of inventory maintenance is 0.8% of the product price.
The Lead Time (delivery time) for the coffee order is 3 weeks.
Managing an imported coffee order, regardless of the order size, costs $35,000.
The café's storeroom has a capacity of 200 kg to store coffee beans.

a) What is the quantity Q?* optimal for each order, which minimizes the total annual inventory management cost? What is
the total annual cost of that inventory management policy?

b) Determine the Reorder Point (ROP) and the time that elapses between when an order is received until it is received.
the following order.

c) In 'ARTE LATTE' the following problem is presented: the supplier wants to increase the cost of placing an order, with
regarding the original cost of $35,000. The owner knows that consequently he will have to increase the quantity of each
order, but he is concerned about the size of the warehouse. Determine the maximum acceptable order cost.
owner of 'ART LATTE' that ensures the optimal order quantity does not exceed the size of the warehouse.
Specific instructions

 The delivery format for each workgroup must be 1 Microsoft Excel file (extension .xlsx) that includes
3 sheets (tabs) labeled a), b) and c). In each of these tabs, each of the must be answered.
requested items. It is recommended to use text boxes to include analysis and comments when appropriate.
 Each group must work without receiving and/or granting collaboration from other work groups.
 This is a summative evaluation instance, and it will weigh 7%.

Formal aspects

The file name should be adjusted to the following example: acin113_s7_lastname_firstname

Complete it and then send it in PDF format to the corresponding submission mailbox, for this:

a) Go to the activity submission section

Click: 'Examine my equipment'

c) Attach the file with your assignment

You have until 11:59 PM on Sunday of this week.

Calculate Reorder Point

Delivery on the requested date

Meets formal aspects

Evaluation Rubric

LEVELS OF ACHIEVEMENT
CRITERIA OF
QUALITY HIGHLIGHTED COMPETENT BASIC INSUFFICIENT DOES NOT COMPLY

100% 80% 60% 30% 0%

Part a) • Use the model It uses the model The model is used It uses the model The model is used
(40%) EOQ, without errors for EOQ to determine the EOQ to determine the EOQ to determine the EOQ to determine
determine the size optimal size of optimal size of optimal size of the optimal size of
 optimal order. order with error in 1 order with error in 2 order with error in 3 or order, but not
Use the EOQ model parameter. parameters. more parameters. complies with it
without errors, for It is used in a way It is used in a way It is used in a way requested.
determine the cost suitable the EOQ model suitable the model suitable the model It is used in a way
annual total (minimum) to determine the cost EOQ to determine the EOQ to determine the suitable the model
minimum annual total with total annual cost total annual cost EOQ to determine
drag error. (minimum) with error of (minimum) with error of the total annual cost
drag. drag. (minimum), but not
fulfills with it
requested.
Part b) It is calculated in a way The Point is calculated The Point is calculated The Point is calculated The Point is calculated
(25%) correct the Point of Reorder, presenting 1 of Reorden, with 1 of Reordering, with 2 or of Reorden, but no
Reorder, making a error in the specification error in the use of the more mistakes in use comply with it
correct use of the of the units. parameters of L. of the parameters d or requested in the use of
units, without errors. The time is calculated The time is calculated L. the parameters d or L.
It is calculated in a way that transpires between that transpires between The time is calculated
correct the time that orders, presenting 1 orders with error in 1 that takes place between The time is calculated
takes place between error in the specification parameter. orders with errors in that takes place between
orders, making a of the units. 2 or more parameters. orders, but not
correct use of the meets the
units, without errors. requested.

Part c) It is calculated in a way The cost of is calculated The cost of is calculated The cost of is calculated The cost is calculated
(25%) correct the cost of maximum order maximum order maximum order maximum order
maximum order acceptable for not acceptable so that not acceptable so that not acceptable so that not
acceptable for not there are problems with the there are problems with there are problems with there are problems with
there are problems with warehouse capacity, the capacity of the the capacity of the the capacity of the
the capacity of the presenting 1 error in store, presenting 2 store, presenting 3 store, but not
grocery store the procedure. errors in the or more errors in the fulfills it
procedure. procedure. requested.

Formal Aspects The task was The task was submitted The task was submitted. The task was submitted The assignment was submitted
delivered on the date on the deadline. with less than 24 with more than 24 hours out of time and not
(10%) limit. It is not followed completely. hours of delay. about the delay. follow the instructions
It is respected in a way the instructions It is not followed by • The following are not followed regarding the format of
integrate the specific to the task, ability the instructions delivery.
instructions particularly regarding instructions task-specific,
specific to the task. to the delivery format. specific to the task, particularly
particularly regarding the format of
regarding the format of delivery.
delivery.