OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9780077835439
Author: Roger G Schroeder, M. Johnny Rungtusanatham, Susan Meyer Goldstein
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 14, Problem 13P
eXcel 13. The Cover-up Drapery Company carries four types of fabric with the following characteristics:
| Type | Annual Demand (yards) | Item Cost per Yard |
| 1 | 300 | $20 |
| 2 | 250 | $18 |
| 3 | 100 | $12 |
| 4 | 200 | $8 |
Assume that the items are to be ordered together from the same supplier at an ordering cost of $20 per order and an annual carrying cost of 20 percent. Also assume 300 working days in a year.
- a. If a P system is used, what is the optimal ordering interval in days?
- b. How much of each type of carpet would be ordered when a combined order is placed?
- c. What is the effect on the ordering interval of changing the carrying cost to 25, 30, and 35 percent?
- d. Why can’t these carpets be ordered by using a Q system?
- e. Classify the four items above as A, B, or C inventory items.
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Students have asked these similar questions
Maroons Medical Supplies, Inc. must order masks from its supplier in lots of 1 dozen boxes. Given the information provided below, complete the following table:
Annual demand 26,000 dozen
Cost per order placed P30
Carrying cost 20%
Price per dozen P7.80
Order Size (Dozen)
250
500
1,000
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1. What is the EOQ?
Thank you so much!
Maroons Medical Supplies, Inc. must order masks from its supplier in lots of 1 dozen boxes. Given the information provided below, complete the following table:
Annual demand 26,000 dozen
Cost per order placed P30
Carrying cost 20%
Price per dozen P7.80
Order Size (Dozen)
250
500
1,000
2,000
13,000
26,000
Number of orders
Average inventory
Carrying cost
Order cost
Total cost
1. What is the EOQ?
Please include/fill the table and solve for EOQ.
Thank you so much!
For fixed order quantity inventory system, which of the following costs is increased when order size (Q) is increased?
a) Setup cost
b) Ordering cost
c) Start-up quality cost
d) Insurance cost
e) Receiving inspection cost
Chapter 14 Solutions
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
Ch. 14.S - eXcel Suppose that for problem 1 in the chapter,...Ch. 14.S - Prob. 2PCh. 14.S - For problem 2 in the chapter, suppose the Grinell...Ch. 14.S - A producer of electronic parts wants to take...Ch. 14 - Identify the different types of inventories (raw...Ch. 14 - Why are stockout costs difficult to determine?...Ch. 14 - What is the difference between a requirements...Ch. 14 - Compare and contrast the management of finished...Ch. 14 - For a given service level, why does a P system...Ch. 14 - Under what circumstances might CPFR be useful, and...
Ch. 14 - Prob. 7DQCh. 14 - What is the appropriate role of inventory turnover...Ch. 14 - Suppose you are managing a chain of retail...Ch. 14 - The Always Fresh Grocery Store carries a...Ch. 14 - The Grinell Machine Shop makes a line of metal...Ch. 14 - The local Toyota dealer has to decide how many...Ch. 14 - Prob. 4PCh. 14 - The famous Widget Company sells widgets at the...Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - An electronics retailer carries a particular...Ch. 14 - An electronics retailer carries a particular...Ch. 14 - The local Toyota dealer has to decide how many...Ch. 14 - The Suregrip Tire Company carries a certain type...Ch. 14 - The Suregrip Tire Company carries a certain type...Ch. 14 - eXcel 13. The Cover-up Drapery Company carries...Ch. 14 - Suppose you are the supplier of the Cover-up...
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- Franz Beckenbauer and Johan Cruyff are purchasing managers for the headquarters of a largesports marketing company chain with a central inventory operation. Their fastest-moving inventory item hasa daily demand of 35 units. The cost of each unit is £200, and the inventory carrying cost is £25 per unitper year. The average ordering cost is £60 per order. It takes about 5 days for an order to arrive, and thereare 252 working days per year. a) To minimize the cost, how many units should be ordered each time an order is placed?What is the total annual inventory cost, including the cost of the units? b) How can they manage the days it takes for an order to arrive? (How does it impact theiroperations and costs?) c) b) Even if there is substantial uncertainty in the parameters in the EOQ-model, it is still quite auseful model. Discuss why. I got this anwsers but i am not sure if its correct: For question 1: EOQ=294 Annual Holding Cost= Q/2 H= 2942×25=£3675 Annual Ordering Cost=Q/D S=…arrow_forwardDescribe the 3 differences between a fixed-quantity (Q) and a fixed-period (P) inventory ns4 a. system? Fixed Quality Inventory Fixed Period Inventoryarrow_forwardFranz Beckenbauer and Johan Cruyff are purchasing managers for the headquarters of a largesports marketing company chain with a central inventory operation. Their fastest-moving inventory item hasa daily demand of 35 units. The cost of each unit is £200, and the inventory carrying cost is £25 per unitper year. The average ordering cost is £60 per order. It takes about 5 days for an order to arrive, and thereare 252 working days per year. a) To minimize the cost, how many units should be ordered each time an order is placed?What is the total annual inventory cost, including the cost of the units?b) How can they manage the days it takes for an order to arrive? (How does it impact theiroperations and costs?)c) b) Even if there is substantial uncertainty in the parameters in the EOQ-model, it is still quite auseful model. Discuss why.arrow_forward
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