Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 6, Problem 10P
Summary Introduction
Interpretation: The stock level that can be authorized for the enterprise is to be computed.
Concept Introduction: Stock levels are pre-determined to avoid overstocking of materials and at the same time to minimize the chances of meeting lower stock levels.
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Jitsmart is a retailer of plastic action-figure toys. The action figures are purchased from Tacky Toys, Inc., and arrive in boxes of 48. Full boxes are stored on high shelves out of reach of customers. A small inventory is maintained on child-level shelves. Depletion of the lower-shelf inventory signals the need to take down a box of action figures to replenish the inventory. A reorder card is then removed from the box and sent to Tacky Toys to authorize replenishment of a container of action figures. The average demand rate for a popular action figure, Agent 99, is 36 units per day. The total lead time (waiting plus processing) is 11 days. Jitsmart’s safety stocky policy variable, a, is 0.25. What is the authorized stock levelfor Jitsmart?
DETERMINING THE NUMBER OF KANBAN CONTAINERS
Hobbs Bakery produces short runs of cakes that are shipped to grocery stores. The owner, Ken Hobbs,wants to try to reduce inventory by changing to a kanban system. He has developed the following dataand asked you to finish the project.Production lead time = Wait time + Material handling time + Processing time = 2 daysDaily demand = 500 cakesSafety stock = 12 dayContainer size (determined on a production order size EOQ basis) = 250 cakes
Jitsmart is a retailer of plastic action-figure toys. The action figures are purchased from Tacky Toys, Inc., and arrive in boxes of 20. Full boxes are stored on high shelves out of reach of customers. A small inventory is maintained on child-level shelves. Depletion of the lower-shelf inventory signals the need to take down a box
of action figures to replenish the inventory. A reorder card is then removed from the box and sent to Tacky Toys to authorize replenishment of a container of action figures. The average demand rate for a popular action figure, Agent 99, is 18 units per day. The total lead time (waiting plus processing) is 2 days. Jitsmart's safety
stocky policy variable, a, is 0.05.
What is the authorized stock level for Jitsmart? units. (Enter your response rounded to the nearest whole number.)
Chapter 6 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
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- Is proper cost of storage is necessary? 1-True 2-Falsearrow_forwardOnce issued, the purchase order becomes the basis for managing the purchasing relationship on an ongoing basis True Falsearrow_forwardReduction in inventories can results in a significant increase in return on investment (ROI) O a. True O b. Falsearrow_forward
- The production schedule at Mazda calls for 1,500 Mazdas to be produced during each of 22 production days in January and 1,050 Mazdas to be produced during each of 20 production days in February. Mazda uses a kanban system to communicate with Gesundheit, a nearby supplier of tires. Mazda purchases four tires per vehicle from the Gesundheit. The safety stock policy variable, a, is 0.14. The container (a delivery truck) size is 225 tires. The average waiting time plus material handling time is 0.15 day per container. Assembly lines are rebalanced at the beginning of each month. The average processing per container in January is 0.20 day. February processing time will average 0.30 day per container. How many containers should be authorized for January? How many containers should be authorized for February? containers. (Enter your response rounded up to the next whole number.) containers. (Enter your response rounded up to the next whole number.)arrow_forwardThe production schedule at Mazda calls for 1,250 Mazdas to be produced during each of 22 production days in January and 1,050 Mazdas to be produced during each of 20 production days in February. Mazda uses a kanban system to communicate with Gesundheit, a nearby supplier of tires. Mazda purchases four tires per vehicle from the Gesundheit. The safety stock policy variable, a, is 0.08. The container (a delivery truck) size is 250 tires. The average waiting time plus material handling time is 0.50 day per container. Assembly lines are rebalanced at the beginning of each month. The average processing per container in January is 0.50 day. February processing time will average 0.10 day per container. How many containers should be authorized for January? containers. (Enter your response rounded up to the next whole number.)arrow_forwardThe production schedule at Mazda calls for 1,200 Mazdas to be produced during each of 22 production days in January and 900 Mazdas to be produced during each of 20 production days in February. Mazda uses a kanban system to communicate with Gesundheit, a nearby supplier of tires. Mazda purchases four tires per vehicle from Gesundheit. The safety stock policy variable, α, is 0.15. The container (a delivery truck) size is 200 tires. The average waiting time plus materials handling time is 0.16 day per container. Assembly lines are rebalanced at the beginning of each month. The average processing time per container in January is 0.10 day. February processing time will average 0.125 day per container. How many containers should be authorized for January?How many for February?arrow_forward
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