OPERATION MANAGEMENT
2nd Edition
ISBN: 9781260242423
Author: CACHON
Publisher: MCG
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Chapter 10, Problem 6CQ
Summary Introduction
To determine: The correct option.
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Students have asked these similar questions
Al Fursan Inc. needs 300 kgs of a material per month (four weeks). It costs RO 10 to make and receive an order, and it
takes 16 workdays to receive it. The annual holding cost is 15 % of purchase price. The price RO1 per kg. The
company is operating 6 days per week. What is the expected time (in days) between order? Round-up to the nearest
integer
Select one:
a. 55
b. 53
c. 207
d. 105
e. 58
What policy results in stockouts 10% of the time?
Company B sold 50% of the 5,000 items that it carried last week. There were 500 items for which some demand was not satisfied.
What is the stockout probability for last week?
A) 10%
B) 50%
C) 85%
D) 28%
Chapter 10 Solutions
OPERATION 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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- Please show work so I can understand it. Given this information: •Expected demand during lead time = 800 units • Standard deviation of lead time demand = 40 units Assuming that lead time demand is distributed normally. The risk of stockout is 5 percent during lead time (a) What amount of safety stock is appropriate? (b) Calculate ROParrow_forwardJoe Henry's machine shop uses 2,520 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,520 Holding cost per bracket per year Order cost per order $1.55 $19.00 Lead time 2 days Working days per year 250 a) What is the EOQ? units (round your response to two decimal places). b)What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? $ units (round your response to two decimal places). (round your response to two decimal places). c)Given the EOQ, how many orders will be made annually? orders (round your response to two decimal places). What would be the annual order cost? $ (round your response to two decimal places). d)Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $ (round your response to two decimal places). e)What is the time between orders? days (round your response to two…arrow_forward2. It is an inventory strategy a company employs to increase efficiency and decrease waste by receiving and producing goods as they are needed in the production process, thereby reducing inventory costs. a.Just In Time Inventory System B.min-Max Inventory System C.Pareto/80-20 inventory rule D.ABC inventory system E.None of the abovearrow_forward
- Suzuki is a company that manufactures motorcycles. It produces 450 motorcycles a month. It buys tyres for motorcycles from Dunlop at a cost of $20 per tyre. The company’s inventory carrying cost per tyre is estimated to be 15% of the cost per tyre. The cost per order is calculated at 250% of the cost per tyre. Rquirement: i) Calculate the EOQ. ii) Determine the number of orders per year? iii) Compute the total cost.arrow_forwardQuestion 1 For supply item ABC, Andrews Company has been ordering 400 units per week. A new purchasing agent has been hired by the company who wants to start using the economic-order- quantity method and its supporting decision elements. She has gathered the following information: Annual demand in units Lead time, in days Ordering costs Insurance and handling costs Purchase price per unit Return on cash investment 20,800 5 $22 $7 $15 15% Requiredarrow_forwardYour company has the following items in inventory: Unit Cost $9 $90 $6 Item A B с D E F G H Annual Demand 1200 100 4500 400 35 250 1000 100 $150 $2000 $120 $90 $75 a) What is the annual dollar volume for all items b) Perform an ABC analysis on the data. Which are the A items, the B items and the C item: c) Why is it desirable to classify items into groups, as the ABC classification scheme does? d) Define and discuss the term "productivity" with help of productivity equation.arrow_forward
- ← William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D 19,400 units/year Ordering cost S $27/order Holding cost H $5/unit/year a) The EOQ for the workbooks is 458 (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? $ 1145 (round your response to the nearest whole number). c) What are the annual ordering costs? $ (round your response to the nearest whole number).arrow_forwardExplain the detailed steps in an ABC Analysis and illustrate the steps using the example of a company’s inventory that is given below. Part/ Bahagian Unit Cost/ Kos Unit (RM) Annual Usage / Penggunaan Tahunan 1 6 100 2 21 300 3 12 280 4 22 320 5 8 150 6 15 180 7 14 280 8 25 300 9 10 260 10 18 160arrow_forwardWalrus Company has the following information available concerning one of its inventory items: Cost of placing an order $30.00 Unit carrying cost per year $3.00 Annual unit demand 6,625 Safety stock 125 Average daily demand 25 Normal lead time in days 10 If there is a delay in shipping the item, approximately how many days can be covered by the safety stock? a.5 days b.110 days c.26 days d.31 daysarrow_forward
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