Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 10, Problem 15PA
Summary Introduction
To determine: The average daily sales rate for candy.
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You sell Candy Corn each year. You have averaged 3,343 pounds of candy corn sold each year with a standard deviation of 130.
You desire a 55% service level. How many pounds of candy corn do you order this year?
Type your answer.....
which of the following is NOT a carrying inventory select one a.all of these b.caital costs c.purchase cost d.storage cost e.none of these
Please do not give solution in image format thanku
A small mail-order company uses 14,000 boxes a year. Holding cost rate is 18 percent of unit cost per year, and ordering cost is $33 per order. The following quantity discounts are available.
Number of Boxes Price per Box 1,000 to 1,999 $1.15 2,000 to 4,999 1.10 5,000 to 9,999 1.05 10,000 or more 1.00
a. Determine the optimal order quantity.
Optimal order quantity boxes
b. Determine the number of orders per year. (Round the final answer to 1 decimal place.)
No. of orders per year
Chapter 10 Solutions
Operations Management
Ch. 10 - It is costly to hold inventory, but inventory can...Ch. 10 - A delivery truck from a food wholesaler has just...Ch. 10 - Prob. 3CQCh. 10 - Prob. 4CQCh. 10 - Prob. 5CQCh. 10 - Prob. 6CQCh. 10 - Prob. 7CQCh. 10 - Prob. 8CQCh. 10 - Prob. 9CQCh. 10 - Prob. 10CQ
Ch. 10 - Prob. 11CQCh. 10 - Prob. 1PACh. 10 - Prob. 2PACh. 10 - Prob. 3PACh. 10 - An electronics manufacturer has 25 days-of-supply...Ch. 10 - Prob. 5PACh. 10 - Prob. 6PACh. 10 - Prob. 7PACh. 10 - Prob. 8PACh. 10 - An online shoe retailers annual cost of holding...Ch. 10 - Prob. 10PACh. 10 - Prob. 11PACh. 10 - Prob. 12PACh. 10 - Prob. 13PACh. 10 - Prob. 14PACh. 10 - Prob. 15PACh. 10 - Prob. 16PACh. 10 - A retailer has annual sales of 500,000 and an...Ch. 10 - Prob. 18PACh. 10 - Prob. 19PACh. 10 - Prob. 1CCh. 10 - Prob. 3CCh. 10 - Prob. 4C
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- Please do not give solution in image format thanku Prince Electronics, a manufacturer of consumer electronic goods, has five distribution centers in different regions of the country. For one of its products, a highspeed modem priced at $360 per unit, the average weekly demand at each distribution center is 85 units. Average shipment size to each distribution center is 450 units, and average lead time for delivery is 2 weeks. Each distribution center carries 2 weeks' supply as safety stock but holds no anticipation inventory. Part 2 a. On average, how many dollars of pipeline inventory will be in transit to each distribution center? $enter your response here. (Enter your response as an integer.)arrow_forwardPls do fast within 5 minutes and i will give like for sure Solution must be in typed form Taylor Supply is a wholesaler of office supplies and equipment. Taylor purchases cartons of staples from Barker Manufacturing. Barker offers a price of $7 per carton of staples. Taylor incurs a fixed charge of $90 per order to cover order equipment and clerical costs. Each order takes 3 days to arrive . Taylor has projected sales to be 603 boxes per day. Taylor's accounting department has determined the holding costs relevant for inventory decisions are 28% of unit cost. Assume Q=3000. What is the demand for staples during lead time? 1) Assume Q=3000. What is the demand for staples during lead time? 2) Assume Q=3000. What z value is associated with a 90% confidence level? 3) Assume Q=3000. If Taylor wants a 90% service level, and the standard deviation in daily demand is 250, what is the appropriate reorder point? 4) Assume Q=3000. If Taylor wants to improve their service level to 95%, and…arrow_forwardWhich of the following incoterms is widely used for sales of bulk commodities like grains and oil? a. DDP (Delivered Duty Paid) b. CIF (Cost Insurance and Freight) c. CFR (Cost and Freight) d. FOB (Free on Board)arrow_forward
- Suppose a retailer turns its inventory of soda 52 times per year. On average, it has 398 bottles of soda on its shelves. (Round your answer to 1 decimal place.) What is the retailer's average daily sales rate? (Assume 365 days per year.) bottlesarrow_forwardCalculate how many of each packet should the store order to maximize the revenue associated with information packets, and what is the store’s expected revenue. WITHOUT EXCELarrow_forwardIs proper cost of storage is necessary? 1-True 2-Falsearrow_forward
- Suppose that a local hardware store turns over its inventory of power tools 7.3 times peryear. If the hardware store has an average inventory of 130 power tools, what is its average daily sales rate for power tools? (Assume that there are 365 days per year.)arrow_forwardWhich of the following is NOT a reason why companies hold inventory? Multiple Choice to respond to the uncertainties in demand levels to respond to the uncertainties in supply levels to safeguard against shipping delays to increase shortages artificiallyarrow_forwardTorrance Refinery produces approximately 23.1 Million barrels of gasoline per year. A California distributor sources its gasoline from the Torrance refinery. The annual demand for gasoline at the California distributor is 5.3 Million barrels. The cost of storing gasoline is approximately $29 per barrel (per year). The cost of placing an order to the Torrance refinery (including shipping) is $7300 per order. Orders will be received gradually instead of delivered all at once (hence EPQ). At what quantity will the total cost of procurement be the lowest? Round your answer to the nearest whole number. Do NOT include a comma. For example, answer like 103542 and NOT 103,542 Answer: 58845 Checkarrow_forward
- A purchaser of a $100,000 single-family home for her family refuses to close escrow after making a $10,000 deposit. She is entitled to Group of answer choices $3,000. $7,000. $10,000. nothingarrow_forwardA store has collected the following information on one of its products:Demand = 4,500 units/year Standard deviation of weekly demand = 12 units Ordering costs = $40/order Holding costs = $3/unit/year Cycle-service level = 90% (z for 90% = 1.28) Lead-time = 2 weeks Number of weeks per year = 52 weeks a. If a firm uses the continuous review system to control the inventory, what would be the order quantity and reorder point?arrow_forwardPlease do not give solution in image format thanku A distributor of computer monitors purchases the monitors from an overseas supplier under a continuous review system. The average demand for a popular computer monitor is normally distributed with a mean of 50 units a day and a standard deviation of 10 units a day. It costs $75 to process each order and there is a 16 day lead time. The holding cost for each monitor is $20 per year and the distributor wishes to maintain a 90% service level. The distributor operates 300 days in a year. Use the information in Scenario 9.10. If lead-time increases by nine days, what is the reorder point needed to maintain a 90% service level? Group of answer choices greater than 1,000 units but less than or equal to 1,250 units greater than 1,250 units less than or equal to 750 units greater than 750 units but less than or equal to 1,000 unitsarrow_forward
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