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Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 10, Problem 3.2Q
Summary Introduction
Case Summary:
D pet clinic has two veterans and two full-time employees with one manager. The pet clinic deals with pharmaceuticals, cleaning supplies, etc. In pharmaceuticals, it majorly has three drugs that are purchased from a supplier which charges a flat fee of $15 on any item purchased. The new manager believes that the clinic is not optimally utilizing ordering cost as a combination of drugs are not ordered. Frequent orders are made which might have increased ordering cost. Order cost and holding cost for the supplies.
Interpretation: Order size of each drug
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Students have asked these similar questions
The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days.
If the order size was 1,000 kilograms of resin, what would be the average inventory level?
Saché, Incorporated, expects to sell 2,030 of its designer suits every week. The store is open seven days a week and expects to sell the same number of suits every day. The company has an EOQ of 1,450 suits and a safety stock of 290 suits. Once an order is placed, it takes three days for Saché to get the suits in.
How many orders does the company place per year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Assume that it is Monday morning before the store opens, and a shipment of suits has just arrived. When will Saché place its next order?
multiple choice
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
What is the significance of 80-20 rule in various fields? How could this be applied in managing inventory more efficiently? Explain.
Chapter 10 Solutions
Practical Operations Management
Ch. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4P
Ch. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Prob. 17PCh. 10 - Prob. 18PCh. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - Prob. 23PCh. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 2.1QCh. 10 - Prob. 2.2QCh. 10 - Prob. 2.3QCh. 10 - Prob. 2.4QCh. 10 - Prob. 3.1QCh. 10 - Prob. 3.2QCh. 10 - Prob. 3.3QCh. 10 - Prob. 3.4Q
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