Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
13th Edition
ISBN: 9780135225899
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 12, Problem 53P
Question
••• 12.38 University of Florida football programs are printed 1 week prior to each home game. Attendance averages 90,000 screaming and loyal Gators fans, of whom two-thirds usually buy the program, following a
- a. What is the cost of underestimating demand for each program?
- b. What is the overage cost per program?
- c. How many programs should be ordered per game?
- d. What is the stockout risk for this order size?
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Question2: A company that sells fruit juices sells 1250 cases of fruit juice from cases priced at $50 per case in a month. The business is in city x and juices are ordered from city y. Each order costs the business $250. Storage costs are 20% of a case of fruit juice. According to this;a) the economic order quantity of the enterprise?b) How many days is the time between two orders?c) What is the total inventory cost of the business, including the acquisition costs, in dollars/month?
question #2
Same problem statement:
Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier,
with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box
costs the retailer $10, and the inventory holding cost is 25% per year.
If the retailer wants to achieve a 99% service level (use the z-value with one decimal, as in Table 13.4 on page 400 of the textbook), what should be the safety stock value?
Numeric Response
772.8
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question #5
Same problem statement:
Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier,
with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box
costs the retailer $10, and the inventory holding cost is 25% per year.
Under the current order quantity of 5,000 boxes and current reorder point of 4,200 boxes, what would be the order-up-to level S that the retailer should use as a baseline to
calculate how much inventory to order when conducting a periodic review?
Numeric Response
1500
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Chapter 12 Solutions
Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
Ch. 12 - Question 1. Describe the four types of inventory.Ch. 12 - Question
2. With the advent of low-cost...Ch. 12 - Question
3. What is the purpose of the ABC...Ch. 12 - Question
4. Identify and explain the types of...Ch. 12 - Question 5. Explain the major assumptions of the...Ch. 12 - Question 6. What is the relationship of the...Ch. 12 - Question
7. Explain why it is not necessary to...Ch. 12 - Question 8. What are the advantages of cycle...Ch. 12 - What impact does a decrease in setup time have on...Ch. 12 - When quantity discounts are offered, why is it not...
Ch. 12 - What is meant by service level?Ch. 12 - Explain the following: All things being equal, the...Ch. 12 - Describe the difference between a fixed-quantity...Ch. 12 - Explain what is meant by the expression robust...Ch. 12 -
15. What is “safety stock”? What does safety...Ch. 12 - When demand is not constant, the reorder point is...Ch. 12 - How are inventory levels monitored in retail...Ch. 12 - State a major advantage, and a major disadvantage,...Ch. 12 - L. Houts Plastics is a large manufacturer of...Ch. 12 - Boreki Enterprises has the following 10 items in...Ch. 12 - Jean-Marie Bourjollys restaurant has the following...Ch. 12 - Lindsay Electronics, a small manufacturer of...Ch. 12 - William Bevilles computer training school, in...Ch. 12 - • 12.6 If D = 8,000 per month, S = $45 per order,...Ch. 12 - Henry Crouchs law office has traditionally ordered...Ch. 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 - Abey Kuruvilla, of Parkside Plumbing, uses 1,200...Ch. 12 - ••• 12.15 M. Cotteleer Electronics supplies...Ch. 12 - •• 12.16 Race One Motors is an Indonesian car...Ch. 12 - Radovilsky Manufacturing Company, in Hayward,...Ch. 12 - Arthur Meiners is the production manager of...Ch. 12 - Cesar Rego Computers, a Mississippi chain of...Ch. 12 - Bell Computers purchases integrated chips at 350...Ch. 12 - Wang Distributors has an annual demand for an...Ch. 12 - Question 12.22 The catering manager of La Vista...Ch. 12 - Prob. 25PCh. 12 - Prob. 26PCh. 12 - Prob. 27PCh. 12 - Question 12.26 Emery Pharmaceutical uses an...Ch. 12 - Question 12.27 Barbara Flynn is in charge of...Ch. 12 - Question 12.28 Based on available information,...Ch. 12 - Question 12.29 Authentic Thai rattan chairs...Ch. 12 - Question 12.30 Tobacco is shipped from North...Ch. 12 - Prob. 45PCh. 12 - Question 12.32 Chicagos Hard Rock Hotel...Ch. 12 - Question 12.33 First Printing has contracts with...Ch. 12 - Prob. 48PCh. 12 - Prob. 29PCh. 12 - Question 12.36 Cynthia Knotts oyster bar buys...Ch. 12 - Question 12.37 Henrique Correas bakery prepares...Ch. 12 - Question 12.38 University of Florida football...Ch. 12 - Prob. 30PCh. 12 - Question 12.40 A gourmet coffee shop in downtown...Ch. 12 - Prob. 31PCh. 12 - Prob. 32PCh. 12 - Prob. 33PCh. 12 - Prob. 34PCh. 12 - Prob. 35PCh. 12 - Prob. 36PCh. 12 - Prob. 37PCh. 12 - Prob. 38PCh. 12 - Prob. 39PCh. 12 - Prob. 50PCh. 12 - Prob. 5PCh. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Inventory Control at Wheeled Coach Video Case...Ch. 12 - Prob. 3.2VCCh. 12 - Prob. 3.3VC
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- question #3 Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. With a safety stock of 300 boxes, what is the approximate service level (round to two decimals)? Numeric Response 84.13 * f5 10 f6 0 4- ♫+ fg C fil W f12. insert prt sc + 11 Ə ← delete backspace home num lock 4x D end 1:23 PM 11/15/2022 pg uparrow_forwardQuestion 11 You are responsible for maintaining an appropriate amount of inventory for Component A, using a Q-type inventory control system (fixed quantity, continuous review). Your company estimates your ordering cost to be 500 and the annual cost of holding this item in inventory to be 12. Annual demand for this item is forecasted to be 5,000 and the company has 300 working days per year. Your supplier's lead time is 15 days. What should your reorder point be if the standard deviation of daily demand is 30 and your target customer service level is 95%? (Round to the nearest integer.) Your Answer: Answer Question 12 You are responsible for maintaining an appropriate amount of inventory for Component A, using a P-type inventory control system (periodic review) with P=30. Your supplier's lead time is 20 days. Daily demand averages 400, with a standard deviation of 200. How much safety stock will you need if your target customer service level is 95%? (Round to the nearest integer.) Your…arrow_forwardQuestion 1: Which of the following best defines " stockout costs"? options: A) They are physical goods used in operations. B) They are costs associated with retrieving inventory items from a workshop C) They are costs associated with interruptions to assembly lines D) They are associated with inventory being unavailable when needed to meet demand. E) None of the above. Question 2 At many LCBO stores in Ontario, Hennessy Cognac is kept in a clear locked case. Based on this information, according to the ABC Inventory Analysis method, is Hennessy most likely to be classified as an A item, a B item, a C item, or none of these? Question 2 options: A) C item B) None C) A item D) B item Question 3 What purpose does Rent the Runway's high-speed reverse logistics system serve? options: A) It allows the customers to return inventory to the fulfillment centre in record time. B) It allows the company to send inventory out to recipients (customers) in record time. C) It allows customers to return…arrow_forward
- Question 8 What of the following best describes just-in-time inventory management? A firm minimises the time lags present in the supply chain by maintaining a certain amount of inventory to use in these lag times Inventory is maintained as a buffer to meet uncertainties in demand, supply, and movements of goods Production inefficiencies arising when production capacity stands idle for lack of materials are minimised by holding a small stock of essentials at all times A firm acquires inventory precisely when needed so that its inventory balance is always at, or close to, zeroarrow_forwardQUESTION 9 A popuar and effective tool for demand management and planning is calledarrow_forwardQuestion 3 Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 2,750 rolls. The cost per roll is $875, and the annual holding cost is 28 percent of the cost. Each order costs $75. How many rolls should Yellow Press order at a time? _______________rolls at a time. (Enter your response rounded to the nearest whole number.) What is the time between orders? (Assume 200 workdays per year.) __________________days. (Enter your response rounded to one decimal place.)arrow_forward
- Question 7 Firm develop new products to a.gain market share and build brand equity b.keep their research and development teams gainfully employed c.take up slack in capacity d.gain first mover advantage and eliminate waste Question 8 Economic order quantity (EOQ) assumes all of the following conditions apply .demand is known and is constant over time .there are no shortages allowed.lead time for the receipt of orders is constant.Order quantity is received all at once true or false? question 10 Trade-offs in the new product development relate to A.Product / service design, time to market and profitability B.Proft. Expenditure and market share C.Time. cost and quality D.Market reach, product / service design and timingarrow_forwardQuestion 23 A truck maintenance facility has annual demand of 25000 gallons of motor oil and operates 360 days per year. The lead time from placement of an order for motor oil until delivery is 5 days and the standard deviation of daily usage is 12.5 gallons. Use z=1.28 for a 90% service level and determine the appropriate re-order point. O 347.22 gallons 35.77 gallons 383 gallons 370 gallonsarrow_forwardQuestion 1: What are the primary reasons for holding inventory?arrow_forward
- question 3 Sam's Cat Hotel operates 52weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about these bags. Refer to the standard normal table AT END for z-values. ≻Demand= 92 bags/week ≻Order cost =$58/order ≻Annual holding cost =26 percent of cost ≻Desired cycle-service level=99 percent ≻Lead time = 1 week(s) (5 working days) ≻Standard deviation of weekly demand = 20 bags ≻Current on-hand inventory is 310 bags, with no open orders or backorders. a. What is the EOQ? Sam's optimal order quantity is__________ bags. (Enter your response rounded to the nearest whole number.) What would be the average time between orders (in weeks)? The average time between orders is _________weeks. (Enter your response rounded to one decimal place.) b. What should R be? The reorder point is _________ bags. (Enter your response rounded to the…arrow_forwardQuestion 4An electronics shop sells 6000 headphones in a year and the sales is relatively constantthroughout the year. These headphones are purchased for SR 20.00 each, and the leadtime is three days. The holding cost per headphone per year is 10% of the unit cost andthe ordering cost per order is SR 75. There are 300 working days per year. Calculate thefollowing:(i) What is the annual holding cost?(ii) In minimizing the cost, how many orders would be made each year?(iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)? Write the answer on the computerarrow_forwardQUESTION 1:A confectioner buys plastic boxes in bulk and uses them to pack chocolates. The annual requirement of these boxes is 1,200, and each box costs $30. The ordering and carrying costs are $10 per order and 20%, respectively. The supplier from whom the confectioner purchases these boxes sells them only in lots of 25, that is, you only purchase quantities in multiples of 25 boxes.(a) How many boxes should the confectioner order so as to minimise inventory total stocking costs?(b) If the supplier offers 2% discount on the cost of each box when the purchases are in quantities of 300 at a time, should the confectioner accept this offer?(c) Suppose the supplier has decided that instead of the 2% discount offer the following price breaks will be used:ORDER QUANTITY COST PER BOXLess than 100 $30.00100 to 199 $29.75200 or more $29.60What order quantity should the confectioner make?arrow_forward
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