Usage Lead Time Parent (weeks) Inventory Immediate per Beginning Component Parent A none 1 B A 2 250 C A 1 6 500 D A 3 3 750 E A 2 2 750 F B 4 2 3000 G B 2 4 1000 H. D 2 5000 I D 2 4 5000 E 1 8 1000 K E 1 5000 L E 2 4 2500 M F 3 250 N F 2560 H 2 K 1 500 Q K 2 1000 334 23

Inventory Problem at Three Spoons Market Randy is the owner of Three Spoons Market. Three Spoons Market is an upscale tapas restaurant in a town of about 200,000 people. According to both Yelp and Trip Advisory, it is the highest restaurant in town. Randy had been having trouble with inventory management (he runs out some items while others go bad) and has brought you in as a consultant to help, due your background in inventory management. The menu at the restaurant changes monthly, and there are daily specials. Randy follows what other restaurant Owners are doing to improve their bottom line-he reads trade publication and online blogs. He also tries to keep up with trends in other industries that may help him manage better. He recently read about the success small-jobs have had with many managing inventory as A,B or C. As Randy thinks about his business, it is really a job shop, since food is prepared after the consumer orders from the menu. The food is prepared to customer tastes and…

Costco also employs a just-in-time inventory management system, which includes sharing data directly with many of its largest suppliers. Companies like Kimberly-Clark calculate re-order points in real time and send new inventory, as needed, to replenish store shelves. Costco also works to redesign product packaging to squeeze more bulky goods onto trucks and shelves, reducing the number of orders Costco needs to place with suppliers.Occasionally, the company leverages its 75 million square feet of warehouse space to reduce purchasing costs. For example, when Procter & Gamble recently announced a 6% price increase for its paper goods, Costco bought 258 truckloads of paper towels at the old rate and stored them using available capacity in its distribution centers and warehouses.These inventory management techniques have allowed Costco to succeed in tough times while others have failed. Costco turns its inventory nearly 12 times a year, far more often than other retailers. With many…

Acadia Logistics anticipates that it will need more distribution center space to accommodate what it believes will be a significant increase in demand for its final-mile services. Acadia could either lease public warehouse space to cover all levels of demand or construct its own distribution center to meet a specified level of demand, and then use public warehousing to cover the rest. The yearly cost of building and operating its own facility, including the amortized cost of construction, is $15.00 per square foot. The yearly cost of leasing public warehouse space is $24.50 per square foot. E Click the icon to view the expected demand requirements. a. The expected value of leasing public warehouse space as required by demand is S (Enter your response as a whole number.) More Info Requirements (in sq. ft) Probability 230,000 430,000 630,000 830,000 0.35 0.4 0.2 0.05 Print Done