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 4P
Ruby-Star Incorporated is considering two different vendors for one of its top-selling products, which has an average weekly demand of 50 units and is valued at $75 per unit. Inbound shipments from vendor 1 will average 350 units with an average lead time (including ordering delays and transit tune) of 2 weeks. Inbound shipments from vendor 2 will average 500 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a 2-week supply of inventory as safety stock and no anticipation inventory.
- What would be the average aggregate inventory value of this product if Ruby—Star used vendor 1 exclusively?
- What would be the average aggregate inventory value of this product if Ruby—Star used vendor 2 exclusively?
- How would your analysis change if average weekly demand increased to 100 units per week?
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Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average
weekly demand of 30 units and is valued at $100 per unit. Inbound shipments from vendor 1 will average 300 units
with an average lead time (including ordering delays and transit time) of 4 weeks. Inbound shipments from vendor 2
will average 490 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a 4-week
supply of inventory as safety stock and no anticipation inventory.
a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $39,000. (Enter
your response as a whole number.)
b. The average aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is $ 39,500. (Enter
your response as a whole number.)
c. How would your analysis change if average weekly demand increased to 60 units per week?
The average aggregate inventory value of the product if Ruby-Star used vendor 1…
Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average
weekly demand of 30 units and is valued at $100 per unit. Inbound shipments from vendor 1 will average 300 units
with an average lead time (including ordering delays and transit time) of 4 weeks. Inbound shipments from vendor 2
will average 490 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a 4-week
supply of inventory as safety stock and no anticipation inventory.
a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $39,000. (Enter
your response as a whole number.)
b. The average aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is $ (Enter your
response as a whole number.)
Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of
60
units and is valued at
$60
per unit. Inbound shipments from vendor 1 will average
370
units with an average lead time (including ordering delays and transit time) of
5
weeks. Inbound shipments from vendor 2 will average
520
units with an average lead time of
1
week.
Ruby-Star operates 52 weeks per year; it carries a
5-week
supply of inventory as safety stock and no anticipation inventory.
a. What would be the average aggregate inventory value of this product if Ruby-Star used vendor 1 exclusively?b. What would be the average aggregate inventory value of this product if Ruby-Star used vendor 2 exclusively?c. How would your analysis change if average weekly demand increased to 100 units per week?
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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