Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 12, Problem 2.1CS
Summary Introduction
Case summary:
PHF Company produces the finest home theater systems. The system is assembled using the components that are procured worldwide. Most of the items are procured from wholesalers except for some critical items such as LCD screens that are procured from their own manufacturer.
The LCD screens are shipped through air from their US manufacturer. The emphasis is placed on the efficiencies of the supply chain. The area is closely scrutinized for possible cost saving measures if available.
To determine: The optimal number of LCD’s that should be placed in each order.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Describe vendor-managed inventory (VMI). How is it related to outsourcing?
Explain : EOQ, Lead time, Economies of scale, Distribution center, Pallet.
Explain how are inventory levels monitored in retail stores ?
Chapter 12 Solutions
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Ch. 12 - Ethical Dilemma Wayne Hills Hospital in tiny...Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - What is the purpose of the ABC classification...Ch. 12 - Prob. 4DQCh. 12 - Explain the major assumptions of the basic EOQ...Ch. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - What impact does a decrease in setup time hive on...
Ch. 12 - Prob. 10DQCh. 12 - Prob. 11DQCh. 12 - Explain the following: All things being equal, the...Ch. 12 - Prob. 13DQCh. 12 - Prob. 14DQCh. 12 - Prob. 15DQCh. 12 - When demand is not constant, the reorder point is...Ch. 12 - Prob. 17DQCh. 12 - State a major advantage, and a major disadvantage,...Ch. 12 - L. Houts Plastics it a large manufacturer of...Ch. 12 - Prob. 2PCh. 12 - Jean-Mane Bourjollys restaurant has the following...Ch. 12 - Lindsay Electronics, a small manufacturer of...Ch. 12 - William Sevilles computer training school, in...Ch. 12 - Prob. 8PCh. 12 - Prob. 9PCh. 12 - Matthew Liotines Dream Store sells beds and...Ch. 12 - Southeastern Bell stocks a certain switch...Ch. 12 - Lead time for one of your fastest-moving products...Ch. 12 - Annual demand for the notebook binders at Duncans...Ch. 12 - Thomas Kratzer is the purchasing manager for the...Ch. 12 - Joe Henrys machine shop uses 2,500 brackets during...Ch. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Cesar Rego Computers, a Mississippi chain of...Ch. 12 - Prob. 22PCh. 12 - Prob. 23PCh. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - M. P. VanOyen Manufacturing has gone out on bid...Ch. 12 - Chris Sandvig Irrigation, Inc., has summarized the...Ch. 12 - Prob. 28PCh. 12 - Prob. 29PCh. 12 - Prob. 30PCh. 12 - Barbara Flynn is in charge of maintaining hospital...Ch. 12 - Prob. 42PCh. 12 - Authentic Thai rattan chairs (shown in the photo)...Ch. 12 - Prob. 44PCh. 12 - Prob. 45PCh. 12 - Prob. 46PCh. 12 - Prob. 47PCh. 12 - Gainesville Cigar stocks Cuban agars that have...Ch. 12 - A gourmet coffee shop in downtown San Francisco is...Ch. 12 - Prob. 51PCh. 12 - Henrique Correas bakery prepares all its cakes...Ch. 12 - Prob. 53PCh. 12 - Prob. 1.1CSCh. 12 - Prob. 1.2CSCh. 12 - Prob. 1.3CSCh. 12 - Prob. 2.1CSCh. 12 - Prob. 2.2CSCh. 12 - Prob. 2.3CSCh. 12 - Managing Inventory at Frito-Lay Frito-Lay hat...Ch. 12 - Prob. 1.2VCCh. 12 - Prob. 1.3VCCh. 12 - Prob. 1.4VCCh. 12 - Prob. 1.5VCCh. 12 - Prob. 1.6VCCh. 12 - Managing Inventory at Frito-Lay Frito-Lay hat...Ch. 12 - Inventory Control at Wheeled Coach Controlling...Ch. 12 - Prob. 2.2VCCh. 12 - Inventory Control at Wheeled Coach Controlling...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- A hospital treating COVID patients needs to buy gloves, gowns, and masks for the health care professionals working at the facility. The hospital has two suppliers who can supply the items. The cost, and the maximum number of each item each supplier can provide is given below: Supplier A Supplier B Gloves (cost, max units) ($0.30/unit, 20,000) ($0.35/unit, 11,000) Gowns Masks ($2.00, ($2.50, 5000) 10,000) ($1.75, 7000) ($2.55, 9,500) The hospital immediately needs 30,000 units of gloves, 5500 units of gowns, and 12,500 masks. To account for the economies of scale in logistics, the Supplier A has a requirement of at least 25,000 units in the order, while Supplier B has a requirement of a minimum order size of 10,000 units and a maximum order size of 20,000. What is is the minimum total cost of order that the hospital needs to pay to the suppliers to get the items?arrow_forwardHow are inventory levels monitored in retail stores?arrow_forwardCompany B is a retailer of mobile phones in Australia that works 250 days in a year. Themanager would like you to determine a minimum-cost inventory plan for an upcoming mobilephone to be launched in the market. They have collected the following information:• Annual demand: 750 phones• Phone cost: $1,005 each• Phone RRP: $1,149 each• Net weight: 167 g each• Tare weight: 257 g each• Annual inventory holding cost: 27.5%• Cost per order to replenish inventory: $81.71• Annual in-transit holding cost: 10%• Freight rate (per kg): $8.10• Freight-related charges (per shipment): $276.50 (i.e. handling fee, dangerous goodfee, and lithium battery fee)• Time to process order for freight: 2 day• Freight transit time: 5 daysThe manager wants you to determine the following information:a. Economic order quantityb. The total purchasing costc. The total ordering costd. The total inventory holding coste. The total transportation cost (by weight)f. The total freight-related cost (by shipment)g. The total…arrow_forward
- Chris Sandvig Irrigation, Inc., has summarized theprice list from four potential suppliers of an underground controlvalve. See the accompanying table on the next page. Annual usageis 2,400 valves; order cost is $10 per order; and annual inventory holding costs are $3 .33 per unit.Which vendor should be selected and what order quantity isbest if Sandvig Irrigation wants to minimize total cost?arrow_forwardReactions and additional comments: Per the textbook definition, the term bullwhip effect “Describes the distortions in a supply chain caused by changes in customer demand, resulting in large swings in inventory levels as the orders ripple upstream from the retailer to the distributor and manufacturer” (Wallace, 2020, p. 137). The term is derived from physics. When cracking a whip, someone just has to snap their wrist and it causes a wave like effect that increases with a chain reaction. The bullwhip effect is a term that was first used in the 1990s. The makers of Pampers had many changes in order volumes, when usually diapers were bought at a constant rate (The Bullwhip effect : History and solutions, 2021). This caused the company to receive hard hits in demand with each new order from the retailers. For example, during the Covid-19 pandemic, everyone was told to stay home, go to school from home, and work from home. This caused the need for many more computers and electronic…arrow_forward(a) Elaborate the FIVE (5) types of inventory in a manufacturing company in Malaysia. please provide detailed answer.Thank youarrow_forward
- The Objectives of Supply Chain Management is to be cost effective In Inbound Transportation Cost In Outbound Transportation Cost Across the entire Chain Od. In Inventory Managementarrow_forwardEnumerate and explain the methods of inventory tracking. Give some examples of businesses where they are best applicable.arrow_forwardChris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 800 valves; order cost is $7 per order; and annual inventory holding costs are $2.15 per unit. D Vendor A units at a time from Vendor C Vendor B Quantity 1-14 15-24 25-99 100-199 200-399 400+ Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost? Chris Sandvig Irrigation should order (enter your response as a whole number). Vendor A Price $35.00 34.75 33.55 32.35 31.15 30.75 Vendor D Vendor B Quantity 1-24 25-99 100-199 200-399 400+ Price $34.75 34.00 32.80 31.60 30.50 Vendor C Quantity 1-49 50-149 150-299 300+ Price $34.50 33.75 32.50 31.10 Vendor D Quantity 1-149 150-299 300+ Price $34.25 33.00 31.00arrow_forward
- A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 250 days per year. Certified Supplier New Albany Mfg. LaPlaya Mfg. Order Size (Q) 30,000 60,000 Price per Unit (P) Order quantity: Total procurement cost: Total management oversight cost: Total annual transportation cost: Annual order cost: Annual holding cost: Average annual pipeline inventory cost: Total supply chain costs: $14.38 $13.55 Oversight Cost per Unit (0) $0.00 $0.37 $ LA GA $ LA tA a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 480,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. 30,000 units 60,000 units tA Transport Cost…arrow_forwardBriefly describe each of the costs associated with inventory.arrow_forwardWhich mode of transport do you recommend and why? One year = 365 days.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY