Operations Management
2nd Edition
ISBN: 9781260484687
Author: CACHON, Gerard
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 10, Problem 1PA
Summary Introduction
To determine: The average daily sales rate.
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Suppose a retailer turns its inventory of soda 52 times per year. On average, it has 398 bottles of soda on its shelves.
(Round your answer to 1 decimal place.)
What is the retailer's average daily sales rate? (Assume 365 days per
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Suppose that a local hardware store turns over its inventory of power tools 7.3 times peryear. If the hardware store has an average inventory of 130 power tools, what is its average daily sales rate for power tools? (Assume that there are 365 days per year.)
You sell Candy Corn each year. You have averaged 3,343 pounds of candy corn sold each year with a standard deviation of 130.
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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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- Tyler Automotive, Inc. supplies 1,000 independent auto parts stores throughout the United States. Each store is called on 12 times a year, and the average sales call lasts 30 minutes. Assuming a salesperson works 40 hours a week, so weeks a year, and devotes 75 percent of the time to actual selling, how many salespeople does Tyler Automotive need?arrow_forwardImagine that you are the chief operations officer (COO) of Amazon.com. You are interested in creating a competitive advantage for your company (compared to other online retailers) in that you wish to be able to provide to your customers faster shipping than you have been able to provide with your existing set of warehouses and fulfillment centers. It has been decided that using overnight shipping on every order (which would, of course, be about as quick as shipping could be) has been eliminated as a possibility due to being prohibitively expensive. Describe what you would recommend as the COO to improve the speed with which Amazon.com customers receive the products that they have ordered. What negative consequences or disadvantages, if any, do you see as a result of your proposed solution?arrow_forwardA hotel has a standard rate of $150. One of the distribution channels used by the property has a selling cost per room sold equal to 13% of the standard rate. Find the channel’s net ADR yield.arrow_forward
- A wholesaler estimates that 5.6 times a year a dispensing centre flips its stock. What are the months of supply?arrow_forwardYou run a food bar in UCLA Ackerman, and you sell chocolate croissants for breakfast. Your daily demand for chocolate croissants is on average 50, with a standard deviation of 8. The unit cost of a croissant is $0.70, and you sell at a unit price of $3.00. The refrigerated chocolate croissant must be consumed within 7days (one week) after purchased from your supplier, so you dispose leftover inventory and purchase fresh croissants once every week. Assume the demand in each of the seven days is independently distributed. (The z-table for normal distribution is attached.) (a) What is the optimal weekly purchase quantity for the chocolate croissant? What is average inventory? A student leader, Mark, came to you one day and told you that Anderson School would hold a special event next Thursday morning, and there would be additional demand for the chocolate croissant on that day. Mark wants to reserve a certain amount of croissant from you and sell in the special event at the regular price.…arrow_forwardYou have been asked to help a manufacturing firm that produces a variety of specialty components for local auto speed shops. The firm orders a number of components from suppliers, but the one they have asked you to analyze is special welding rod. Historical data suggests daily consumption of these rods can be modeled by a normal distribution with a mean and standard deviation of 42.3 and 5.1 bolts per day, respectively. The rods come in boxes of 5 rods/box, and the supplier will only ship in box quantities. It takes 2 days to receive an order from the supplier. You may assume that the daily demands are independent and identically distributed, and that inventory position is always known (i.e., continuous review). 1. The current policy is the order thirty boxes from the supplier when inventory position reaches ten boxes. What is the long run fraction of stock outs associated with the current strategy? 2. Assume the cost to place an order is $5 and holding is estimated to be…arrow_forward
- Given that: Sales = $300,000,000 Transportation cost = $15,000,000 Warehousing cost = $4,000,000 Inventory carrying cost rate (W) = 30% Cost of goods sold = $95,000,000 Other operating costs = $55,000,000 Average Inventory (AI) = $15,000,000 Accounts receivable = $35,000,000 What is the earning before interest and taxes? Group of answer choices 75,500,000 205,500,000 150,500,000 126,500,000 46,500,000arrow_forwardA manufacturing company producing medical devices reported $60 million in sales overthe last year. At the end of the same year, the company had $20 million worth of inventory of ready-to-ship devices. Assuming that units in inventory are valued (based on costof goods sold) at $1000 per unit and are sold for $2000 per unit, what is the company’sannual inventory turnover?arrow_forwardConsider a consumer who searches to buy a new coffee mug and assume the only feature she cares about is the mug's price. Also, suppose she has visited a bookstore and learned that the price of a mug there was $12.99. She is aware of two other stores, Store A and Store B, that also sell mugs and she is considering whether to also search those stores. The consumer expects these stores to charge $9.99 and $11.99, respectively, for a mug. For what search cost might the consumer include both Store À and Store B in her consideration set? A. $0.99 B. $1.49 C. $1.99 D. $2.49 E. $2.99arrow_forward
- The total stockout cost = $ enter your response here. (Enter your response as a whole number.)arrow_forwardA company is using a carrier to deliver goods to a major customer. The annualdemand is $2,500,000, and the average transit time is 10 days. Another carrier promises to deliver in 7 days. What is the reduction in transit inventory?arrow_forwardCompute for the annualized purchase frequency given the following; total number of respondents is 100. 10 will buy everyday, 20 will buy twice a week, 30 will buy twice a month, 10 will buy once a month. 10 will buy as the need arises. 10 will buy depending on the budget. 10 will buy whenever convenient. The annualize purchase frequency in this scenario is _____. (The answer should be rounded up.)arrow_forward
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