Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 5.7, Problem 24P
Summary Introduction
Interpretation:ABC classification system.
Concept introduction: the ABC classification system is one means of ranking items. Items are sequenced in decreasing order of annual dollar volume of sales or usage. Ordering the items in this way and graphing the cumulative dollar volume gives an exponential increasing curve known as a pareto curve.
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Table: Factors causing the decline in sales
Factors
% Contribution
Delayed deliveries
15%
Lack of delivery personnel
8%
Inaccurate sales orders
25%
Wrong deliveries
32%
Delayed invoicing
6%
Pilferage
7%
Expired items
7%
a. Following the Pareto Principle, what are the vital factors or main contributors to the decline in sales? Show your Pareto Chart and indicate or label the vital factors or contributors to the problem.
Hint: know the vital few %
b. What are the vital factors or vital contributors to the problem?
c. If the sales and marketing manager wants to reduce the impact of vital factors or contributors by 70%, what will be a good GOAL Statement to improve his sales problem?
Hint: Use SMART GOAL
21-
Which one of the following represent FIFO method of inventory evaluation?
a.
Old items remain in inventory
b.
Old merchandise is sold first
c.
New merchandise is sold first
d.
Average number of goods are sold
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question :
1/ According to Weele, the items that we measure determines the role of the purchasing function. List these roles, and show the mapping.
2/ According to Simpson and et.al, why should we measure the performance of our suppliers?
3/ According to Simpson and et. al, what are the characteristics of our suppliers should we measure? List these down in terms of evaluative criteria and its details.
Chapter 5 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 5.2 - Prob. 1PCh. 5.2 - Prob. 2PCh. 5.2 - Prob. 4PCh. 5.3 - Prob. 7PCh. 5.3 - Prob. 9PCh. 5.3 - Prob. 12PCh. 5.5 - Prob. 16PCh. 5.5 - Prob. 18PCh. 5.6 - Prob. 21PCh. 5.7 - Prob. 24P
Ch. 5.7 - Prob. 25PCh. 5.7 - Prob. 26PCh. 5.7 - Prob. 27PCh. 5 - Prob. 28APCh. 5 - Prob. 31APCh. 5 - Prob. 32APCh. 5 - Prob. 33APCh. 5 - Prob. 37APCh. 5 - Prob. 38APCh. 5 - Prob. 40APCh. 5 - Prob. 41APCh. 5 - Prob. 43APCh. 5 - Prob. 44APCh. 5 - Prob. 45APCh. 5 - Prob. 46APCh. 5 - Prob. 47APCh. 5 - Prob. 48APCh. 5 - Prob. 49APCh. 5 - Prob. 50APCh. 5 - Prob. 51AP
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- What is the purpose of inventory control?arrow_forward25_______ can be reduced by working closely with key suppliers: Select one: a. Synchronization b. In-bound lead times c. Complexity d. Production costsarrow_forwardcan you please help me answer this question.... Rebar Company prepared the following analysis of its year-end inventory on December 31. First, determine the total lower of cost or market value for each product in Rebar Company's inventory. Second, prepare the journal entry needed at year-end to value the inventory at LCM, if applicable. Historical Cost Replacement Cost Product Quantity per unit per unit A 17 $430 $499 B 140 325 299 C 38 75 69arrow_forward
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