Operations Management
2nd Edition
ISBN: 9781260484687
Author: CACHON, Gerard
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 10, Problem 14CQ
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. The company believes that a proper inventory control system (techniques) helps the enterprise in solving the problems of liquidity, eliminating excessive stocks, and achieving increased profits, with substantial reduction in working capital. Critically evaluate the possible different inventory control systems adopted in the company in the light of above information.
Computers lose value as they are stored in inventory. This is an example of whichcomponent of a firm’s inventory holding cost?a. Opportunity cost of capitalb. Storage costc. Spoilage costd. Obsolescence cost
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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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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- A company purchases wood for use in its products. The firm uses 760 pounds of wood per week and purchases wood for $1.75 per pound from a supplier. Each time the firm orders wood from the supplier, the firm must pay a $75 order processing charge. The firm's annual holding cost percentage is 31%. Do not round intermediate calculations. Assume there are 52 weeks in a year and round your answer to two decimal places. If the company orders 3,000 pounds of wood with each order, what is the sum of the annual holding and ordering costs? dollarsarrow_forwardIf a company uses the periodic inventory system, should the date of the physical inventory correspond to the end of an accounting period? Explain why or why not.arrow_forwardTrue or false? Please explain in detail Lowering the inventory turnover rate by drastically increasing the level of safety stocks, will lead to a faster cash conversion cyclearrow_forward
- jeweler purchases silver for use in its products. The firm uses 190 grams of silver per week and purchases silver for $0.52 per gram from a supplier. Each time the firm orders silver from the supplier, the firm must pay a $11 order processing charge. The firm's annual holding cost percentage is 38%. Do not round intermediate calculations. Assume there are 52 weeks in a year and round your answer to two decimal places. If the jeweler orders 1,950 grams of silver with each order, what is the sum of the annual holding and ordering costs? dollars Please do fast ASAP fastarrow_forwardWhat is the relationship between the average inventory and the in-stock probability?a. The more the inventory, the lower the in-stock probability.b. There isn’t a definitive relationship—more inventory could mean a lower or a higherin-stock probability.c. The more the inventory, the higher the in-stock probability.arrow_forwardin a standard ABC analysis, 50 to 60 percent of the number of items in inventory but only about 10 15 percent the annual dollar value representarrow_forward
- At Dot Com, a large retailer of popular books, demand is constant at 17,000 books per year. The cost of placing an order to replenish stock is $8, and the annual cost of holding is $3.00 per book. Stock is received 12 working days after an order has been placed. No backordering is allowed. Assume 250 working days a year. books. (Enter your response rounded to the nearest whole number.) orders. (Enter your response rounded to the nearest a. Dot Com's optimal order quantity is 301 b. The optimal number of orders per year is whole number.)arrow_forwardModels of inventory systems frequently consider the relationships among a beginning inventory,a production quantity, a demand or sales, and an ending inventory. For a givenproduction period j, letsj-1 = ending inventory from the previous period (beginning inventory for period j)xj = production quantity in period jdj = demand in period jsj = ending inventory for period ja. Write the mathematical relationship or model that shows ending inventory as a functionof beginning inventory, production, and demand.b. What constraint should be added if production capacity for period j is given by Cj?c. What constraint should be added if inventory requirements for period j mandate anending inventory of at least Ij?arrow_forwardA factory orders supplies every 5 days. The lead time for deliveries is 8 days. Demand for wax averages 15 pounds per day with a standard deviation of 1.8 pounds. The holding cost for wax is $0.57 per pound per day. The factory wants to achieve an in-stock probability rate of 99.99% for wax. Round your answer to one decimal place. On average, how many pounds of wax will the factory have on order? poundsarrow_forward
- A firm has P5,000,000 of inventory on average and annual sales of P30,000,000. Assume there are 365 days per year. What is the firm’s inventory conversion period?arrow_forwardA company’s holding cost is 16 percent per year. Its annual inventory turns are 10. Thecompany buys an item for $40. What is the average cost (in $s) to hold each unit of thisitem in inventory?arrow_forwardWhy would a "Just in Case" or traditional inventory management practices be preferred to a "Just in Time" inventory management?arrow_forward
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