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 9, Problem 24P
Summary Introduction
Interpretation: Cycle of service level is to be calculated by having 5-pound barbells.
Concept Introduction: Service level refers to a chance or probability of a situation or event for preventing a stock out situation in an organization and service level in an industry.
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Students have asked these similar questions
1.Which of the following pertains to an efficient supply chain?
A)It deals with innovative products
B)The product life cycle will be short
C)It is worthwhile to invest in good forecasting systems
D)All of the above
2.Which of the following costs do not come under inventory carrying cost calculation?
A)Investment in a software for updating stock position online
B)Investment in stores space
C)Salaries of procurement personnel
D)Cost of maintaining the inventory stocks
3.Which of the following will have lesser bullwhip effect in a supply chain?
A)Supply Chain co-ordination
B)Opening more stocking points closer to the point of consumption
C)Empowering the lower echelons of the inventory to take decisions on fulfilling the demand
D)All of the above
Muscle Bound is a chain of fitness stores located in many largeshopping centers. Recently, an internal memo from the CEOto all operations personnel complained about the budget over-runs at Muscle Bound’s central warehouse. In particular, shesaid that inventories were too high and that the budget will becut dramatically and proportionately equal for all items in stock.Consequently, warehouse management set up a pilot study tosee what effect the budget cuts would have on customer service.They chose 5-pound barbells, which are a high volume SKU andconsume considerable warehouse space. Daily demand for thebarbells is 1,000 units, with a standard deviation of 150 units.Ordering costs are $40 per order. Holding costs are $2/unit/year.The supplier is located in the Philippines; consequently, thelead time is 35 days with a standard deviation of 5 days. MuscleBound stores operate 313 days a year (no Sundays).Suppose that the barbells are allocated a budget of $16,000 fortotal annual costs. If…
The Excessive Course Fees. The $75 per credit hour course fee tacked on to all the MBA classes has generated a windfall of $56,250 in its first semester. “Now we just need to make sure we spend it all on the MBA students,” the assistant dean said to the Graduate Curriculum Committee. Four months later, the chairman of the committee, Professor Lee, distributed the following shopping list and tried to figure out what items to get for all the MBA students. As an expert in management science, Professor Lee tended to think in terms of binary decision variables, so he added the left-most column for ease of use. For example, if iPads are purchased for all the MBA students, A = 1, and otherwise A = 0; if a job fair is organized for all the MBA students, C = 1, and otherwise C = 0.
Decision Variable
Item
Cost
Note
A
iPads
$750/unit
Must get the cover if iPads are purchased
B
iPad covers with MBA logo
$25/unit
Not needed unless we buy iPads
C
Job fair
$15,000
Can’t afford both this and…
Chapter 9 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. 9 - What is the relationship between inventory and the...Ch. 9 - Suppose that a large discount retailer with a lot...Ch. 9 - Will organizations ever get to the point where...Ch. 9 - A part is produced in lots of 1,000 units. It is...Ch. 9 - Prince Electronics, a manufacturer of consumer...Ch. 9 - Terminator, Inc. manufactures a motorcycle part in...Ch. 9 - Ruby-Star Incorporated is considering two...Ch. 9 - Haley Photocopying purchases paper from an...Ch. 9 - Prob. 6PCh. 9 - Southern Markets, Inc. is considering the use of...
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 - Put yourself in Sue McCaskey’s position and...Ch. 9 - By how much do your recommendations for these two...
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