Anna Litic, a new supply chain manager at High Precision Inc. (HP), decides to checksome data on the supply chains she manages. She discovers that HP’s in-transit inventory of electronic components from its Tacoma, Washington, factory to its Asian distribution center (DC) has increased from two quarters ago. However, the distributionof demand at the Asian DC has not changed over this period of time. Anna knows thatthe Asian DC manager is controlling inventory to achieve a fixed in-stock probabilitytarget, so she is happy to see that indeed the in-stock inventory at the Asian DC has alsonot deviated off the target. Anna wonders what has happened to the Asian DC’s averageinventory. What is she likely to discover regarding the Asian DC’s on-hand inventory? a. On-hand inventory has not changed because the in-stock probability has not changedat the Asian DC.b. On-hand inventory has increased because the lead time from Tacoma, Washington, tothe Asian DC must have increased.c. On-hand inventory has not changed because average demand has not changed at theAsian DC.d. On-hand inventory has decreased because the variability of demand must have decreased.e. It is not possible to predict what Anna is likely to observe with respect to the changein on-hand inventory; that is, it could be lower, higher, or unchanged.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Anna Litic, a new
some data on the supply chains she manages. She discovers that HP’s in-transit inventory of electronic components from its Tacoma, Washington, factory to its Asian distribution center (DC) has increased from two quarters ago. However, the distribution
of demand at the Asian DC has not changed over this period of time. Anna knows that
the Asian DC manager is controlling inventory to achieve a fixed in-stock probability
target, so she is happy to see that indeed the in-stock inventory at the Asian DC has also
not deviated off the target. Anna wonders what has happened to the Asian DC’s average
inventory. What is she likely to discover regarding the Asian DC’s on-hand inventory?
a. On-hand inventory has not changed because the in-stock probability has not changed
at the Asian DC.
b. On-hand inventory has increased because the lead time from Tacoma, Washington, to
the Asian DC must have increased.
c. On-hand inventory has not changed because average demand has not changed at the
Asian DC.
d. On-hand inventory has decreased because the variability of demand must have decreased.
e. It is not possible to predict what Anna is likely to observe with respect to the change
in on-hand inventory; that is, it could be lower, higher, or unchanged.
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