Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 12, Problem 5P
A
Summary Introduction
Interpretation: The total number of inventory in weeks of supply is to be calculated.
Concept Introduction: Average inventory is the average value of specific goods within a particular time period. It may vary from the median. It is calculated by averaging the sum of the number of points within the starting and ending values.
B
Summary Introduction
Interpretation: The total inventory is to be calculated as inventory turns
Concept Introduction: Average inventory is the average value of specific goods within a particular time period. It may vary from the median. It is calculated by averaging the sum of the number of points within the starting and ending values.
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Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows:
MONTH
DEMAND (UNITS)
January
4,000
February
4,100
March
3,800
April
4,200
May
4,850
June
4,500
July
5,150
August
4,750
September
5,250
October
5,550
November
6,150
December
5,850
a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.7. (picture below)(Do not round intermediate calculations. Round your answers to 2 decimal places.)
Month
Forecast
january
february
march
april
may
june
july
august
september
october
november
december
The Bawl Corporation supplies alloy ball bearings to auto manufacturers in Detroit. Because of its specialized manufacturing process, considerable work-in-process and raw materials are needed. The current inventory levels are $2,470,000 and $1,566,000, respectively. In addition, finished goods inventory is $1,200,000 and sales (at cost) for the current year are expected to be about $48 million. Express total inventory asa. Weeks of supplyb. Inventory turns
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows:
MONTH
DEMAND (UNITS)
January
4,000
February
4,100
March
3,800
April
4,200
May
4,850
June
4,500
July
5,150
August
4,750
September
5,250
October
5,550
November
6,150
December
5,850
a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.7. (picture below)(Do not round intermediate calculations. Round your answers to 2 decimal places.)
Month
Forecast
january
february
march
april
may
june
july
august
september
october
november
december
b. To…
Chapter 12 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
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