Coca Cola in Turkey manages its products' inventory at Shell gas stations, that is Coca Cola, decides replenishment time and the order quantities for all its products. Shell sends real-time sales data of Coca Cola products at itsgas station stores and as part of this agreement Coca Cola gives a certain percentage discount in the prices it charges to Shell. Based on what we learned in class, choose the correct statement(s):O a.Because Shell owns the stores it is more likely to make better forecasts of the demand for Coca Cola productsOb.This agreement is a strategy to reduce the bullwhip effectOc.The main purpose of VMI is to reduce lead time in supply chainsO d.This is known as vendor-managed inventory (VMI)

The bullwhip effect is described as the distortion in demand that occurs due to an incorrect…

Answered: Coca Cola in Turkey manages its…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Similar questions

Sam is at the post office to mail a package. After he pays for mailing the package, the clerk asks if he would like to buy some stamps. Sam pauses to think before he answers. He doesnt have a credit card with him. After paying for the package, he has about $30 in his pocket. Analyze this from an inventory standpoint. Identify the relevant considerations.
Which of the following are likely to be symptoms of the bullwhip effect in a supplychain comprised of consumers, a retailer, a wholesaler, and a factory?I. Variability of orders from the retailer to the wholesaler is higher than variability oforders from the wholesaler to the factory.II. Variability of orders from the wholesaler to the factory is lower than the variability inconsumer demand to the retailer.III. Variability in consumer demand is lower than the variability of orders from the retailerto the wholesaler.a. I only e. I and III but not IIb. II only f. II and III but not Ic. III only g. I, II, and IIId. I and II but not III
26 Which of the following statements is true with regard to cycle stock? a It is also called surplus stock. b It is received from a downstream supply chain partner. c It is seasonal in nature d It is also referred to as base stock. 27 Inventories that are in transit in containers or trucks ______. a are known as pipeline inventories b are known as in-house inventories c are relatively small in global supply chain (as compared to domestic supply chains) d are known as en route inventories
3. Daily demand for tablets of amazon is normally distributed, with a mean of 100 and standard deviation of 30. The tablet supplier takes an average of 15 days to replenish inventory at Amazon. The standard deviation of the supplier lead time is 5 days. Amazon follows a "periodic review policy" with a review period of 30 days. Amazon is targeting a CSL of 98% for its tablet inventory. (a) What is the mean demand during lead time and review period? What is the standard deviation of demand during lead time and review period? (c) What is the safety (b) stock (in units) during lead time and review period?
Consider the company in Question 1. Now the company is considering working with a local supplier. Since the local supplier is located close to the company, there is no restriction on the frequency of the orders. The purchasing cost from this local supplier is $80 per unit. Every time they place an order there is a fixed shipping cost of $12. Holding cost is again based on 20% annual interest rate. Calculate the economic order quantity. Calculate the total annual cost the company will incur with this supplier if they use the order quantity you found in (a) (Total Annual Cost = Annual Ordering Cost + Annual Inventory Holding Cost + Annual Purchasing Cost) The company is also considering producing the product at home. The production rate is 12000 units per year. They estimate that the setup cost is $20 per setup. The production cost is $60 per unit. The holding cost is based on the annual interest rate and the production cost of the product. Calculate the economic production quantity. How…
Charlie’s Pizza orders all of it pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every seven weeks to take orders. Because the orders are shipped directly from Ital, they take six weeks to arrive. Charlies Pizza uses an average of 250 pounds of pepperoni each week, with a standard deviation of 18 pounds. Charlie prides itself on offering only the best –quality ingredients and a high level of service, so it wants to ensure a 95 percent probability of not stocking out on pepperoni. Assume that the sales representative just walked in the door and there are currently 470 pounds of pepperoni in the walk-in cooler. How many pounds of pepperoni would you order? (Use the excels NORMSINV( ) function to find the critical value for the given a-level, (Round you z-value to 2 decimal places and final answer t
Conduct a comprehensive comparative analysis between the Wilson approach and the ABC analysis method for inventory management.
Miko runs a cosmetics store in Melbourne. A good part of Miko’s revenue comes from the popular MM foundation line. It has an extremely loyal customer base who often buy other products when they come into the shop to purchase their foundation.Earlier this year, a ‘Beep Q’ opened up in down the road selling cosmetics at low prices. Beep Q is a large national chain with a 30% share of the Australian cosmetics market. They have a history of opening shops near to existing small shops and driving them out of business through heavy discounting. Beep Q stock all of the MM foundation line and, for the last 3 months, have been selling these products for 35% below RRP and 10% below the price that Miko pays for them wholesale (including delivery). Since they opened, Miko has seen her sales of these products plummet and it is starting to make her worried about the survival of her business.Advise Miko as to her options for challenging Beep Q’ discounting under the Competition and Consumer Act 2010…
Miko runs a cosmetics store in Melbourne. A good part of Miko’s revenue comes from the popular MM foundation line. It has an extremely loyal customer base who often buy other products when they come into the shop to purchase their foundation. Earlier this year, a ‘Beep Q’ opened up in down the road selling cosmetics at low prices. Beep Q is a large national chain with a 30% share of the Australian cosmetics market. They have a history of opening shops near to existing small shops and driving them out of business through heavy discounting. Beep Q stock all of the MM foundation line and, for the last 3 months, have been selling these products for 35% below RRP and 10% below the price that Miko pays for them wholesale (including delivery). Since they opened, Miko has seen her sales of these products plummet and it is starting to make her worried about the survival of her business. Miko has also contacted Puppy, who distributes the MM products, to discuss her concerns about Beep Qs’…
Describe,, How do inventory control policies impact a company's cash flow and profitability?
Conduct a detailed comparative analysis between the Wilson approach and the ABC analysis method for inventory management.
An importer buys items in bulk from abroad and sells them on to the local population with a fast delivery time. They receive orders for 250 items per month. It costs £30 to have a shipment of new stock delivered, which takes 1 month to arrive after being ordered. Storing each item costs 10p per month. (a) Find the optimal order size and order frequency for the importer to minimise their costs. Justify your answer (b) The seller realises that the demand each month varies, and can be seen as normally distributed with mean 250 and variance 100. (c) They decide to create a buffer stock such that the probability of running out of stock is at most 1%. By what percentage does this increase the importers operating costs?

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