Operations Management: Processes and Supply Chains (11th Edition)
Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 9, Problem 1DQ

What is the relationship between inventory and the nine competitive priorities we discussed in Chapter 1,“Using Operations to Create Value”? Suppose that two competing manufacturers, Company H and Company L, are similar except that Company H has much higher investments in raw materials, work-in-process, and finished goods inventory luau Company L. In which of the nine competitive priorities will Company H have an advantage?

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Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

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Chapter 9 Solutions

Operations Management: Processes and Supply Chains (11th Edition)

Ch. 9 - New Wave Shelving’s inventory manager would like...Ch. 9 - Yellow Press, Inc. buys paper in 1,500-pound rolls...Ch. 9 - Babble, Inc. buys 400 blank cassette tapes per...Ch. 9 - At Dot Com, a large retailer of popular books,...Ch. 9 - Leaky Pipe, a local retailer of plumbing supplies,...Ch. 9 - Sam’s Cat Hotel operates 52 weeks per year, 6...Ch. 9 - Consider again the kitty litter ordering policy...Ch. 9 - In a Q system, the demand rate for strawberry ice...Ch. 9 - Petromax Enterprises uses a continuous review...Ch. 9 - In a continuous review inventory system, the lead...Ch. 9 - In a two-bin inventory system, the demand for...Ch. 9 - You are in charge of inventory control of a highly...Ch. 9 - Your firm uses a continuous review system and...Ch. 9 - A company begins a review of ordering policies for...Ch. 9 - Prob. 22PCh. 9 - The Farmer’s Wife is a country store...Ch. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 26PCh. 9 - In a P system, the lead time for a box of...Ch. 9 - Suppose that Sam’s Cat Hotel in Problem 13 uses...Ch. 9 - Your firm uses a periodic review system for all...Ch. 9 - Using the same information as in Problem 21,...Ch. 9 - Wood County Hospital consumes 1,000 boxes of...Ch. 9 - A golf specialty wholesaler operates 50 weeks per...Ch. 9 - What is the EOQ and what is the lowest total cost?Ch. 9 - What is the annual cost of holding inventory at...Ch. 9 - Prob. 3AMECh. 9 - Prob. 4AMECh. 9 - Prob. 5AMECh. 9 - Prob. 6AMECh. 9 - Comment on the sensitivity of the EOQ model to...Ch. 9 - Consider the pressures for small versus large...Ch. 9 - Prob. 2VCCh. 9 - The Marker Maker© product recently experienced an...Ch. 9 - Prob. 1CCh. 9 - Prob. 2C

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