Consider a single source procurement purchase (R becomes infinite) application with the following parameters: demand = 379 units per period, lead time = 13 periods, per unit cost = 15.7, procurement cost = 3.97 per procurement, holding cost = 0.16 per period, shortage cost = 0.41 per period, allowable space = 1,091 cubes, space per unit = 9.87 cubes per unit. Assume the warehouse restriction is active and find the optimum procurement quantity.

Consider a single source procurement purchase (R becomes infinite) application with the following parameters: demand = 379 units per period, lead time = 13 periods, per unit cost = 15.7, procurement cost = 3.97 per procurement, holding cost = 0.16 per period, shortage cost = 0.41 per period, allowable space = 1,091 cubes, space per unit = 9.87 cubes per unit. Assume the warehouse restriction is active and find the optimum procurement quantity.

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
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ABC Corporation is a large manufacturing company that has been using an outdated inventory management system for the past 10 years. The system has become slow and unreliable, causing delays in production and shipping. The IT department has recommended replacing the system with a modern cloud-based solution that can be accessed from anywhere and has the potential to integrate with other business systems.After a thorough evaluation of several vendors and their products, the IT team has recommended the purchase of a system called "InventoryPro". The system has a user-friendly interface, robust reporting capabilities, and is scalable to accommodate future growth.The CEO has approved the project, and the IT team has started working on the implementation plan. The project team includes a project manager, business analyst, database administrator, software developer, and testing specialist.As part of the project plan, the team will need to migrate the data from the old system to the new one,…