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 d

Individual task Essay
Questions:

oRIMOWER 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.

oHistorical 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.

oAmong 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

Formalities:

Wordcount: 1.750

Cover, Table of Contents, References and Appendix are excluded of the total wordcount. Font: Arial 12,5 pts.
Text alignment: Justified.

The in-text References and the Bibliography have to be in Harvard’s citation style.

Submission: Week 9 – Via Moodle (Turnitin). Specific day and hour limit: Sunday 28th November at 23:59CEST

Weight: This task is a 30% of your total grade for this subject.