Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 10, Problem 18P
Summary Introduction
Interpretation: The Average number of cards in shop as inventory is to be calculated.
Concept Introduction: Inventory management is the process of managing the company’s stock so that there are no stock outs. It includes ordering, storing, managing the stock.
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Chapter 10 Solutions
Practical Operations Management
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- PM CTC is engaged in selling shoes for the military. Upon checking on PM CTC’s supplier, it takes 8 days in between placing an order and eventually receiving it. On the average, they sell 2000 pairs of shoes per day. Determine PM CTC’s reorder point.arrow_forwardSam's Cat Hotel operates 50 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $12.00 per bag. The following information is available about these bags: > Demand = 95 bags/week > Order cost = $50.00/order > Annual holding cost = 20 percent of cost > Desired cycle-service level = 80 percent > Lead time =5 weeks (30 working days) > Standard deviation of weekly demand = 15 bags > Current on-hand inventory is 320 bags, with no open orders or backorders. a. Suppose that the weekly demand forecast of 95 bags is incorrect and actual demand averages only 75 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $ higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)arrow_forwardFisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 97,200 units per year, an ordering cost of $4 per order, and carrying costs of $1.50 per unit. What is the economic ordering quantity? How many orders will be placed during the year? What will the average inventory be? What is the total cost of ordering and carrying inventory?arrow_forward
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