Unit 11 - Review Questions

Subject: Logistic management Q): What are the 2 approaches of BPR for implementation, give example? Q): What are the types & category of inventory management?

Weekly Average Demand 698 Standard deviation of (weekly) demand 35 Setup cost ($) 1750 Procurement cost ($) 290 Holding cost /unit/week ($) 1 In the provided table, you will find details about the demand and inventory levels of the "Galaxy Explorer" drone, a best-selling product at a department store. The store is open for 42 weeks in a year. The store manager placed an order in the beginning of week 13, and he expects to receive the orders in the beginning of week 15. On average, how many units of "Galaxy Explorer" drone should the store manager expect to sell while waiting for the order to arrive? (Do not round your intermediate calculations. Round your final answers to the nearest whole number. Only enter a number. Do not enter any units

Subject: Logistic management Q): What are the concern of inventory control & overall objective of inventory management? Q): What are the system of inventory counting?

Franklin Tooling, Inc., manufactures specialty tooling for firms in the paper-making industry. All of their products are engineer-to-order and so the company never knows exactly what components to purchase for a tool until a customer places an order. However, the company believes that weekly demand for a few components is fairly stable. Component 135.AG is one such item. The last 26 weeks of historical use of component 135.AG is recorded below. Week Demand Week Demand 1 2 3 4 5 6 7 8 9 10 11 12 13 137 136 143 136 141 128 149 136 134 142 125 134 118 14 15 16 17 18 19 20 21 22 23 24 25 26 131 132 124 121 127 118 120 115 106 120 113 121 119 Use OM Explorer’s Time Series Forecasting Solver to evaluate the following forecasting methods. Start error measurement in the fifth week, so all methods are evaluated over the same time interval. Use the default settings for initial forecasts.i. Naïve (1-Period Moving Average)ii. 3-Period Moving Averageiii. Exponential Smoothing,…

1. Safety stock and service levels are positively correlated. True False

Historical records on the use of spare parts for several large hydraulic presses are to serve asan estimate of usage for spares of a newly installed press. Stockout costs involve downtimeexpenses and special ordering costs. These average $4,200 per unit short. Spares cost $800each, and unused parts have zero salvage. Determine the optimal stocking level.Spares Used Relative Frequency Cumulative Frequency0 .20 .201 .40 .602 .30 .903 .10 1.004 or more .001.00

Problem 16-16 (Algo) The McDonald's fast-food restaurant on campus sells an average of 7,200 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 795 pounds of hamburger in stock. Assume that the hamburger patties cost $4 a pound and there are 52 weeks in a year. a. What is the Inventory turnover for the hamburger pattles? (Round your answer to 2 decimal places.) Inventory turnover ratio per year b. On average, how many days of supply are on hand? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Average days of supply

Demand for portable music players for joggers has caused Nancy Industries (Nancy) to grow almost 50 percent over the past year.  The number of joggers continues to expand, so Nancy expects demand for music player to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them.   Demands for the players for last year was as follows : Month Demand (units) Jan 4200 Feb 4300 Mar 4000 Apr 4400 May 5000 Jun 4700 Jul 5300 Aug 4900 Sep 5400 Oct 5700 Nov 6300 Dec 6000   Question : From the choice of simple moving average, weighted moving average, exponential smoothing, and linear regression analysis, which forecasting technique would you consider the most accurate to Nancy Industries? Why?

Problem 11-11 (Algo) Famous Albert prldes himself on being the Cookle King of the West. Small, freshly baked cookles are the specialty of his shop. Famous Albert has asked for help to determine the number of cookles he should make each day. From an analysis of past demand, he estimates demand for cookles as VROBARTLITY OF DENAND 0.04 DEEAND 1,800 dosen 2,000 2,200 0.10 0.20 2,400 2,600 2,000 3,000 0.26 0.15 0.03 0.14 ces Each dozen sells for $0.65 and costs $0.49, which includes handling and transportation. Cookles that are not sold at the end of the day are reduced to $0.30 and sold the following day as day-old merchandise. a. Compute the expected profit or loss for each cookie making decislon quantity. (Round your answer to the nearest whole number. Enter expected losses with a negative sign.) Cookles Baked (Dozen) Probability of Demand Expected Profit/Loss 1,800 0.04 2,000 0.10 2,200 0.28 2,400 0.26 2,600 0.15

Instruction: Answer what is being required. You may compute them manually or use the Excel QM.Pencil number 2 at the campus book-store are sold at a fairly steady rate of $60 per week. It cost the bookstore $12 to initiate an order to its supplier and holding costs are $0.005 per pencil per year.Determine◦ What is the optimal number of pencils for the bookstore to purchase to minimize total annual inventory cost?◦ How many Number of orders per year?◦What is the The length of each order cycle?◦ How much is the Annual holding cost?◦ How much is the Annual ordering cost? ◦ What is the total annual inventory cost?If the order lead time is 4 months, determine the reorder point.Please Illustrate the inventory profile graphically.What additional cost would the book-store incur if it orders in batches of 1000?

Seah Corporation presents the following data: Usage is 400 units per month, cost per order is P20, and carrying cost per unit is P6. Given these data, answer the following questions: (A) What is the economic order quantity? (B) How many orders are required each month?   CHOICES A) 32 and (B) 6 (A) 32 and (B) 8 (A) 52 and (B) 6 (A) 52 and (B) 8 (A) 62 and (B) 10

Q33  please please help me Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from history that an average of 36 customers (with a standard deviation of 22) cancel their reservation or do not show for the flight. Revenue from a ticket on the flight is $145. If the flight is overbooked, the airline has a policy of getting the customer on the next available flight and giving the person a free round-trip ticket on a future flight. The cost of this free round-trip ticket averages $240. Super Discount considers the cost of flying the plane from New York to Los Angeles a sunk cost. By how many seats should Super Discount overbook the flight? Note: Use Excel's NORM.S.IN( function to find the z value. Round z value to 2 decimal places. Round your answer to the nearest whole number.

Case Study 4: Inventory Management.   I) A Furniture manufacturing company uses 1200 units of an item annually and the cost price is $250 per unit. The ordering costs are $600 per order and holding costs are $4.00 per item per annum.   Required: Calculate the economic order quantity.  Determine the number of orders per annum. Determine the annual stock holding cost. Determine the annual ordering cost.

1. Inventory management for a tyre company? 2. Process management for a tyre company?

Problem 16-16 (Algo) The McDonald's fast-food restaurant on campus sells an average of 4,800 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 465 pounds of hamburger in stock. Assume that the hamburger patties cost $3 a pound and there are 52 weeks in a year. a. What is the inventory turnover for the hamburger patties? (Round your answer to 2 decimal places.) Inventory turnover ratio per year b. On average, how many days of supply are on hand? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average days of supply

Average daily demand (d) 130 cases Demand Standard deviation (σd) 20 cases Service level 94.0%   Service level alternative 86.0%   Lead tme, LT 6 days 1. What is the standard deviation of demand during lead time? Round your answer to one decimal place. _______ cases 2. What is the required safety stock at a 94 percent service level? Round your answer to the nearest whole number. _______ cases 3. What is the reorder point? Round your answer to the nearest whole number. _______ cases 4.What is the required safety stock at a 86 percent service level? Round your answer to the nearest whole number. _______ cases 5. What is the safety stock reduction? Round your answer to the nearest whole number. _______ cases

Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normaldistribution with a mean of 21 gallons per week and a standard deviation of 3.5 gallons per week.The new manager desires a service level of 90 percent. Lead time is two days, and the dairy isopen seven days a week. (Hint: Work in terms of weeks.) b. If a fixed-interval model is used instead of an ROP model, what order size would be needed forthe 90 percent service level with an order interval of 10 days and a supply of 8 gallons on handat the order time? What is the probability of experiencing a stockout before this order arrives?

Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows:   MONTH DEMAND (UNITS) January 4,240 February 4,340 March 4,040 April 4,440 May 5,040 June 4,740 July 5,340 August 4,940 September 5,440 October 5,740 November 6,335 December 6,030     a. Using linear regression analysis, what would you estimate demand to be for each month next year? (Do not round intermediate calculations. Round your answers to 2 decimal places.)     b. To be reasonably confident of meeting demand, Nina decides to use 4 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence? (Do not round intermediate calculations. Round…

The Meeras Cafeteria at the College of Economics and Political Science serves cooked food including shawarma and hamburgers, as well different types of drinks and packaged food products 1/ What type of inventory system would you suggest for the Meeras Cafeteria - Continuouis Review or Periodic Review? What is the reason for your answer. 2) To implement the system you suggest, what data will you need, and how do you obtain this data. 3) Once you have identified the needed data, explain how you can implement the inventory management system. Indicate a recommended service level, how you will decide the order quantities and how inventory will be monitored.

Su;bject: Logistic Management Q): What are the causes of poor inventory management & how manager control it & manage poor inventory? Q): What challenges faces in reverse logistic?

Problem 16-15 (Algo) The owner of a large machine shop has just finished its financial analysis from the prior fiscal year. Following is an excerpt from the final report: Net revenue Cost of goods sold Value of production materials on hand Value of work-in-process inventory Value of finished goods on hand Inventory turnover ratio $350,000 307,000 a. Compute the inventory turnover ratio (ITR). (Round your answer to 1 decimal place.) Weeks of supply 42,500 47,000 17,500 per year b. Compute the weeks of supply (WS). (Do not round intermediate calculations. Round your answer to 1 decimal place.)

tion 37 (A) Motherboard B Memory (C) Processor Secondary board (D)

Subject: Logistic management Q): Calculate EOQ where as Annual demand is 2543570 units Ordering cost per order is  78, Inventory carrying cost per unit is 167

The average days account receiveable/ days of inventory?

Woodwork limited manufactures luxury furniture for resale to big shops. It does not keep inventory of materials used to assemble the furniture and only orders the required materials from its suppliers when orders are received from customers. Nevertheless, it keeps very minimal inventory (if any). What type of woodwork using to manage its inventory costs? A. Inventory planning system B. Just-in time system C. Kaizen system D. Material requirement planning system

Can you try to make a inventory system level 1 diagram exploded version but aligned with this context diagram that I would send

2) Life Cycle Assessment of Glass. Inventory Analysis   Determine, as an example, the second phase (Inventory Analysis) of the Life Cycle Assessment of the glass used for the manufacture of soda bottles.

How do I calculate the safety stock increase (decrease) if Supplier A is replaced by Supplier B? Full image attached to the question

Year Cost of Good  Sold Beginning   Inventory (In   Pesos) Ending   Inventory (In   Pesos) 1  503,425  10,300  12,400 2  643,056  12,400  11,200 3  690,432  11,200  10,670 4  734,509  10,670  11,200 5  758,734  ?  10,987 REQUIRED Determine the inventory turnover for year 5. Determine the number of days the finished goods stay in inventory in Year 1. There was no improvement in inventory turnover in Year 5 compared to Year 1. This  statement is not correct. Write YES or NO for the answer

Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normaldistribution with a mean of 21 gallons per week and a standard deviation of 3.5 gallons per week.The new manager desires a service level of 90 percent. Lead time is two days, and the dairy isopen seven days a week. (Hint: Work in terms of weeks.)a. If an ROP model is used, what ROP would be consistent with the desired service level? Howmany days of supply are on hand at the ROP, assuming average demand?b. If a fixed-interval model is used instead of an ROP model, what order size would be needed forthe 90 percent service level with an order interval of 10 days and a supply of 8 gallons on handat the order time? What is the probability of experiencing a stockout before this order arrives?c. Suppose the manager is using the ROP model described in part a. One day after placing anorder with the supplier, the manager receives a call from the supplier that the order will bedelayed because of problems at…

Calculate available-to-promise quantities.

Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normaldistribution with a mean of 21 gallons per week and a standard deviation of 3.5 gallons per week.The new manager desires a service level of 90 percent. Lead time is two days, and the dairy isopen seven days a week. (Hint: Work in terms of weeks.)a. If an ROP model is used, what ROP would be consistent with the desired service level? Howmany days of supply are on hand at the ROP, assuming average demand?

Multiple choice need help in completing question 8 and 14. 8. The just-in-time inventory system increases:         a. Centralized support         b. The number of costs to allocate         c None of these are correct 14.Costs incurred due to reduced product yield are:      a. Appraisal costs      b. Internal failure costs       c. External failure costs