Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 5.7, Problem 25P
a)
Summary Introduction
Interpretation:rank the items in decreasing order of annual profit.
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 and graphing the cumulative dollar volume gives an exponentially increasing curve known as a Pareto curve.
b)
Summary Introduction
Interpretation: store proprietor chooses to sell the chocolate cookies.
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.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Posing choices for the prospect in which either alternative represents a sale.“Would you prefer to order the paint and primer combination or purchase the items separately?”
If a merchandising company has a beginning inventory of $400,000 and an ending inventory of$200,000, and the company purchased $1,600,000 of inventory during the month, what is the company’s cost of goods sold?
Describe what you are selling (1 item only):
What is the price you will sell at to sustomer:
How will you explain to potential customers WHY they should buy your product?
If your total costs to run the company is $5,000 per month, how many do you have to sell each month
to cover your costs? Show your calculation!
Do you think this is a realistic number to achieve each month? Explain your answer.
In case sales go slower than expected, come up with a volume discount offer for customers and
describe how it will work in the box below:
(for example if you buy 5 items instead of 1, you will give customer a 10% discount).
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- A retailer wants to understand the relationship between the sales units (in number of units) of a new product and its price. Now, which types of model can be considered to answer the above firm issue?arrow_forwardA manufacturer of analog watches wants to get rid of their excess inventory as the product is in the decline stage. Suggest and explain the relevance of two sales promotional tools each for consumers, trade partners and sales force for such a product. Also, explain few decision factors in this context which must be considered while designing the sales promotion program for the consumers.arrow_forwardApex medical company sells needles, gloves, operating equipment, copiers, medical beds, cupboards, lockers to the Ministry of health based on their requirements for their day-to-day operational activities. This type of selling comes under category of: a. Selling to resellers b. Selling to governments c. Selling to institutions d. Selling to business usersarrow_forward
- Please read below scenario in which a consumer explains how she made purchasing decision for a car. First of all, I decided on the price and security features of car. Then, I determined my criteria about other features such as the oil amount consumed per 100 km, diesel or gasoline and so on. When I searched for information on the Internet, I felt that Brand X can offer me favorable alternatives. I visited one of the showrooms of Brand X. I loved this red car and purchased it. Please select the name of Hierarchy of Effects that the consumer likely used. Â a) The Standard Learning Hierarchy b) The Low-Involvement Hierarchy c) The Experiential Hierarchy d) All the abovearrow_forwardKnowing how to use the ABC analysis, make up a list of 10 items in a stores inventory, then decide which 10 items sold at the store would constitute 80% of the revenue and create a Word document using the ABC analysis.arrow_forwardThe pottery classys clay for $6 and sells the clay for $16 during the day. At the end of the day, any leftover clay is sold to the pottery students for $3. What is the difference between the underage cost and overage cost? Answer to the nearest whole number.arrow_forward
- A tennis racquet manufacturer has been very successful in manufacturing and marketing a single line of inexpensive tennis racquets, aimed at beginners and casual players. The manufacturer’s current distribution channel is through large discount retailers, such as Kmart and Walmart. Recently, three major sporting goods chains also began to carry the racquets. The company puts most of its promotion budget into sales promotion to the retailers and into in-store displays. The competitive advantage for this company is its low price for good, sturdy tennis racquets. The company wishes to expand its operations, either with new products or in new customer markets. 1.      What are some possible new products for this company? 2.      Do these products fit the company’s image? Does the firm have the technological or production expertise needed for these products? 3.      If a product is introduced and fails, what effect will the failure have on the company and its other products? The…arrow_forwardSince 1973, Nordstrom Rack has been the off-price division of fashion retailer Nordstrom. Nordstrom Rack has been successful in applying the four Ps to its retail strategy. The stores stock high-quality merchandise from well-known designers at discounted prices, creating the “treasure hunt”: the search through ever-changing merchandise for “things they didn’t know they had to have when they walked in.” Nordstrom also sells its products on its website, and on a flash sale site called Hautelook. · Discussion Question #1: Which benefits of in-store shopping are related to the appeal of the “treasure hunt”arrow_forwardA hotel has a standard rate of $150. One of the distribution channels used by the property has a selling cost per room sold equal to 13% of the standard rate. Find the channel’s net ADR yield.arrow_forward
- The following are the criteria for evaluating price metrics except: a. tracks with differences in value across segments b. is easy to measure and enforce c. offering economic value and design d. tracks with differences in cost to servearrow_forwardMattress Wholesalers, Inc. is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7.46 million and inventory was $1.52 million. This year, costs of goods sold is $8.64 million and inventory investment is $1.61 million. a) What was its weeks of supply last year? Inventory Inventory = Sales per Week Cost of Sales/52 Weeks Weeks of Supply= - b) What is its weeks of supply this year? Inventory Inventory Sales per Week Cost of Sales/52 Weeks c) Is Mattress Wholesalers making progress in its inventory reduction effort? Since the number of weeks that cover the supply has Weeks of Supply = 10.60 (round your response to two decimal places). = 9.69 (round your response to two decimal places). F Mattress Wholesalers is making in its inventory-reduction effort.arrow_forwardThe following table shows financial data (year 2009) for two US retailers: Save-A-Lot Retailers and Wally’s Mart. Assume that both companies have an average annual holding cost rate of 20% (i.e. it costs both retailers $2 to hold an item for one entire year that they procured for $10). *Refer to attached image* How much lower, on average, is the inventory cost for Save-A-Lot compared to Wally’s Mart of a household cleaner valued at $50 COGS? Give your answer in terms of dollars. Assume that the unit cost of the household cleaner is the same for both companies and that the price and the inventory turns of an item are independent.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY