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 27P
Summary Introduction
Interpretation:
Total number of replenishments per year, its exchange rate and inventory value.
Concept Introduction:
The exchange curve is to identify a set of system policy parameters which can be varied to alter system performance. Possible parameters include a target stock out probability, or an average time between stock outs, replenishment frequency or unit costs.
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Models of inventory systems frequently consider the relationships among a beginning inventory,a production quantity, a demand or sales, and an ending inventory. For a givenproduction period j, letsj-1 = ending inventory from the previous period (beginning inventory for period j)xj = production quantity in period jdj = demand in period jsj = ending inventory for period ja. Write the mathematical relationship or model that shows ending inventory as a functionof beginning inventory, production, and demand.b. What constraint should be added if production capacity for period j is given by Cj?c. What constraint should be added if inventory requirements for period j mandate anending inventory of at least Ij?
Suppose the following item is being managed using a fixed-order quantity model with safety stock.
Annual Demand = 100,000 units
Order quantity = 30,000 units
Safety stock = 4000 units
What are the average inventory level and inventory turnover for this item?
Suppose the demand of a product in a retail store is 800 per year and it occurs at a constant
rate. Placement of an order of this product to an outside supplier by the store is 40 Dollar.
The super market authority has calculated the inventory holding cost per unit per year as
90 cents. Assuming no occurrence of shortages of the product, find
i. the minimal number of orders per year. Explain whether the nearest integer number of
orders per year is justified.
Please answer this part with the explanation part asked in the
question.
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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