Operations Management
2nd Edition
ISBN: 9781260484687
Author: CACHON, Gerard
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 10, Problem 12PA
Summary Introduction
To determine: The days-of-supply of inventory.
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Most inventory models attempt to minimize
a. The likelihood of stockout
b. None of these
c. The numbers of orders placed
d. Total inventory-based cost
e The number of items ordered
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Flag Sport Obermeyer (SO) is a manufacturer of ski apparel. A ski jacket is sourced at a cost of $80 and sold for $125. One order is placed at the beginning of the season. Currently, SO disposes of any unsold jackets at the end of the season to outlet stores at $70. It costs $10 to hold a jacket in inventory for the entire season and then ship it to an outlet store. Demand for ski jackets has been forecast to be normally distributed, with a mean of 4,000 and standard deviation of 1,750.
What is the expected overstock at the end of the season that will be sent to outlet stores?
Please do not give solution in image format thanku
Chapter 10 Solutions
Operations Management
Ch. 10 - It is costly to hold inventory, but inventory can...Ch. 10 - A delivery truck from a food wholesaler has just...Ch. 10 - Prob. 3CQCh. 10 - Prob. 4CQCh. 10 - Prob. 5CQCh. 10 - Prob. 6CQCh. 10 - Prob. 7CQCh. 10 - Prob. 8CQCh. 10 - Prob. 9CQCh. 10 - Prob. 10CQ
Ch. 10 - Prob. 11CQCh. 10 - Prob. 12CQCh. 10 - Prob. 13CQCh. 10 - Prob. 14CQCh. 10 - Prob. 1PACh. 10 - Prob. 2PACh. 10 - Prob. 3PACh. 10 - An electronics manufacturer has 25 days-of-supply...Ch. 10 - Prob. 5PACh. 10 - Prob. 6PACh. 10 - Prob. 7PACh. 10 - Prob. 8PACh. 10 - Prob. 9PACh. 10 - Prob. 10PACh. 10 - Prob. 11PACh. 10 - Prob. 12PACh. 10 - A retailer has annual sales of 500,000 and an...Ch. 10 - An online shoe retailers annual cost of holding...Ch. 10 - Prob. 15PACh. 10 - Prob. 16PACh. 10 - Prob. 17PACh. 10 - Prob. 18PACh. 10 - Prob. 19PACh. 10 - Prob. 1CCh. 10 - Prob. 3CCh. 10 - Prob. 4C
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- Give typed solution and explanation of all subparts Don't upload type of photos Kamran Paint Company uses 60,000 gallons of pigment per year. The cost of ordering pigment is Tk.200 per order, and the cost of carrying the pigment in inventory is Tk.1.00 per year. The firm uses pigment at a constant rate every day throughout the year.? p =TK,s a. How much pigment should the firm order every time to minimize on total costs? b. Calculate the total cost of the plan? C. Determine the total number of orders suggested by the plan. d Assuming that it takes 20 days to receive an order once it has been placed, determine the level of pigment storage at which the firm has to place the next order of pigment. e. What are the average and maximum values of inventory for the firm?arrow_forwardGive typed full explanationarrow_forwardGive typing answer with explanation and conclusionarrow_forward
- which of the following is NOT a carrying inventory select one a.all of these b.caital costs c.purchase cost d.storage cost e.none of thesearrow_forwardEdwarldo’s Manufacturing uses 2,400 units of a product per year on a continuous basis. The product Carrying Cost are $60 per year and Ordering Cost are $250. It takes 20 days to receive a shipment after an order is placed and the firm requires a safety stock of 8 days of usage in inventory. Show Computations and Explanations. A. Calculate the Economic Order Quantity (round up the answer to the nearest whole unit) (Format: 111) B. Calculate the Total Cost per year to order and carry this item. (Format: 1,111) C. Their supplier has notified the company that if they increase their order quantity by 58 units, they will give the company a discount. Calculate the Dollar Discount that the company will have to at least give to Edwarldo’s Manufacturing to be indifferent. (Format: 111)arrow_forwardGive typed full explanation not a single word hand written otherwise leave itarrow_forward
- Please do not give solution in image format thankuarrow_forwardA customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100 shares of ABC stock for $35 per share. The customer will break even when the stock is selling for what price per share at expiration?arrow_forwardA store has collected the following information on one of its products:Demand = 4,500 units/year Standard deviation of weekly demand = 12 units Ordering costs = $40/order Holding costs = $3/unit/year Cycle-service level = 90% (z for 90% = 1.28) Lead-time = 2 weeks Number of weeks per year = 52 weeks a. If a firm uses the continuous review system to control the inventory, what would be the order quantity and reorder point?arrow_forward
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Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY