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 16, Problem 8P
Question
• 16.5 Discount-Mart, a major East Coast retailer, wants to determine the economic order quantity (see Chapter 12 for EOQ formulas) for its halogen lamps. It currently buys all halogen lamps from Specialty Lighting Manufacturers in Atlanta. Annual demand is 2,000 lamps, ordering cost per order is $30, and annual carrying cost per lamp is $12.
- a. What is the EOQ?
- b. What are the total annual costs of holding and ordering (managing) this inventory?
- c. How many orders should Discount-Mart place with Specialty Lighting per year?
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Students have asked these similar questions
Question 4
Illustrate Guardian pharmacy’s reorder system to manage their inventory so meet customer expectation.
answer guidelines
To use order point system and periodic review system. Illustrate its characteristics/advantage in the context of managing inventory in a pharmacy.
For example:
1. Order point system - When the quantity of an item on hand in inventory falls to a predetermined level, an order is placed.
• The quantity ordered is based on economic order quantity (EOQ).
• Order quantity are usually fixed.
• The order point is determined by the average demand during the lead time.
• If the average demand or the lead time changes, there is no corresponding change in the order point, effectively there is a change in the safety stock.
• The interval between replenishment are not constant but vary depending on the actual demand during the order cycle.
Usually used for stocks that are longer to sell from the store so to…
Question 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…
Question 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 computer
Chapter 16 Solutions
Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
Ch. 16 - Question 1. What is JIT?Ch. 16 - Prob. 1DQCh. 16 - Question 3. What is TPS?Ch. 16 - Question 4. What is level scheduling?Ch. 16 - Question 5. JIT attempts to remove delays, which...Ch. 16 - Prob. 6DQCh. 16 - Prob. 8DQCh. 16 - Question 9. Discuss how the Japanese word for card...Ch. 16 - Question 10. Standardized, reusable containers...Ch. 16 - Prob. 11DQ
Ch. 16 - Prob. 12DQCh. 16 - Prob. 7DQCh. 16 - Question 16.1 Leblanc Electronics, Inc., in...Ch. 16 - Question 16.2 Tej Dhakars company wants to...Ch. 16 - Question 16.3 Pauline Found Manufacturing, Inc.,...Ch. 16 - Prob. 7PCh. 16 - Question 16.5 Discount-Mart, a major East Coast...Ch. 16 - Question 16.6 Discount-Mart (see Problem 16.5),...Ch. 16 - Prob. 10PCh. 16 - Question 16.8 Carol Cagle has a repetitive...Ch. 16 - Question 16.9 Given the following information...Ch. 16 - Question 16.10 Rick Wing has a repetitive...Ch. 16 - Prob. 11PCh. 16 - Prob. 12PCh. 16 - Question JIT at Arnold Palmer Hospital Video Case...Ch. 16 - Question JIT at Arnold Palmer Hospital Video Case...Ch. 16 - Question JIT at Arnold Palmer Hospital Video Case...Ch. 16 - Question JIT at Arnold Palmer Hospital Video Case...
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