Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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The question below is from the attached image of a video case file from Operations Management: Processes and Supply Chains (11th Edition) by by Krajewski, L. J., Malhotra, M. K. & Ritzman, L. P.
1. Explain how both independent and dependent demand items are present at Crayola.
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- Samson is trying to solve the inventory needs for his fidget spinner business. He is in talks with two manufacturing businesses that can solve his problems. He is debating with himself if he should choose one or the other for his business. What role of Operations Management is Samson embodying in this scenario? (A) Storage and Inventory System (B Materials and Requisition Evaluation of Suppliers D Quality Control Managementarrow_forwardHow are operational scheduling and supply chain sustainability related? The issue is whether or not the company can make use of both.arrow_forward9.15 If the annual cost of goods sold is $30,000,000 and the average inventory is $5,000,000: a. What is the inventory turns ratio? b. What would be the reduction in average inventory if, through better materials management, inventory turns were increased to 10 times per year? c. If the cost of carrying inventory is 25% of the average inventory, what is the annual savings?arrow_forward
- part barrow_forwardAndrew Manufacturing held an average inventory of $1.5 million (raw materials, work-in-process, finished goods) last year. Its sales were $8.5 million, and its cost of goods sold was $6.2 million. The firm operates 290 days a year. What is the inventory days’ supply? What target inventory level is necessary to reach a 15- and 10-day inventory days supply during the next two years?arrow_forward8:02 ◄ Search Expert Q&A ☎ differentiation all can reduce the amount of inventory in the supply chain? Which of the following best explains why location pooling, lead-time pooling, and delayed Done All three strategies reduce the in-stock probability. O All three strategies make customers wait longer to receive their product. O All three strategies reduce the total lead time from the supply source (e.g., a factory) to the end consumer. All three strategies reduce the variability demand within the supply chain.arrow_forward
- Frank’s Contract Bakery measured her 2021 Cost of Goods Sold to be 6516265. Her Average Aggregate Inventory Value on raw materials was 2,310,000, work in process (WIP) was 1,500,000 and the finished goods was 1,400,000. Last year Days of Supply is: No decimalsarrow_forwardwith the complexity of the product range and the need for high levels of quality, she has found it difficult to influence sourcing strategy. Formal procurement procedures and systems at PEC are very limited. Currently, the buyer waits to receive a requisition from the production function to place orders for equipment, materials and products. This means that orders are usually urgent and the buyer has little opportunity to review alternative suppliers or sourcing approaches. Low value maintenance, repair and operations (MRO) requirements cause particular problems as the requisitions are difficult to aggregate. This causes excessive and time-consuming administration for the buyer. Testing requirements Pressure testing machinery used for testing the quality of seams in the protective work-wear is nearing the end of its life and will soon require replacement. Product testing is essential to confirm final quality of manufacture and conformance to industry standards. The test equipment is…arrow_forwardSupplier Raw Materials Inventory Management Production Question related to the diagram: Quality Control Packaging Finished Goods Distribution Retail Customer The process starts from the supplier, goes through raw materials, inventory management, production, quality control, packaging, finished goods, distribution, retail, and finally reaches the customer. How does the 'Inventory Management' stage interact with the 'Production' stage, and what strategies can be implemented to optimize this interaction?arrow_forward
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