Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 1, Problem 16P
Summary Introduction
Interpretation: Discuss the hierarchy of decision making management for shipping the good by freight, air or ground trucking.
Concept Introduction: XYZ organization started a production company that produces bearing and clutch parts. They produces 1000 parts of bearing and clutch parts for fulfilling the customer demand. Company uses different method of shipping the good like freight, air or ground trucking to send the finished goods to the market. The motive of company is to earn maximum profit from the good. To achieve this motive implementation team decide which method is good for the betterment of company by calculating all the parameter.
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CASE:Reducing New Product Stockouts at ColesYou have been employed in the supply chain management organization of Coles for the past two years.You are very excited when you are asked to join a team being formed to address serious inventory management problems often associated with the introduction of new products. Too often, customers who make a trip to Coles to purchase a highly advertised new product are disappointed to find the store is out of stock of that particular item. Such stockouts result in lost sales for both Coles and the product supplier and the potential loss of customers as shoppers look elsewhere to find the new product. The resulting loss of customer goodwill can have a long-term effect on sales. Solving this problem will require a balancing act; the company needs to carry sufficient inventory of new products to meet customer demand while avoiding excessive inventory levels that increase costs. The team you have joined consists of nine people representing the finance,…
Chapter 1 Solutions
Practical Operations Management
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