OPERATIONS MANAGEMENT (LL)-W/ACCESS
17th Edition
ISBN: 9781260037821
Author: CACHON
Publisher: MCG
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Chapter 11, Problem 1C
Summary Introduction
Case summary:
Person RH made the Product T2 bags with the option for the customers to make their own custom-made three-panel bags. A production plant was setup in City SF. After manufacturing the bag is shipped to the customer who has made the order within a time period of 2 to 3 days.
To determine: The total cost of making the bag in City SF and Country CA.
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Petromax Enterprises uses a continuous review policy to manage the inventory for one of its SKUs. The following information is available on the item. The firm operates 50 weeks in a year. Demand = 90,000 units/year Ordering Cost = $60/Order Holding Cost = $3/Unit/Order Lead Time = 10 weeks Standard Deviation of Weekly Demand = 200 units Suppose due to some recent changes to the target service level, they have determined the reorder point to be 20,000. If the inventory position of this SKU is currently 19,600, how many units should they order?
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ESTRELLA is a bike retailer located in the outskirts of Bacolod City. ESTRELLA purchases bikes from STORAGEHUB in orders of 250 bikes which is the current economic order quantity. STORAGEHUB is now offering the following bulk discounts to its customers: Price
0% discount on orders less than 499 P3,500
10% discount on orders above 500 units - 999 3,150
15% discount on orders above 1,000 units 2,975
ESTRELLA is wondering if the EOQ model is still the most economical and whether increasing the order size would actually be more beneficial. Following information is relevant to forming the decision:
Annual demand is 5000 units
Ordering cost is $100 per order
Annual holding cost is 25%
QTY
SETUP
HOLDING
PROODUCT COST
TOTAL COST
Q1
25423.73
25812.5
what is the product cost
what is the total cost
Q2
3000
198437.5
what is…
Chapter 11 Solutions
OPERATIONS MANAGEMENT (LL)-W/ACCESS
Ch. 11 - Prob. 1CQCh. 11 - Prob. 2CQCh. 11 - Prob. 3CQCh. 11 - Prob. 4CQCh. 11 - Prob. 5CQCh. 11 - Prob. 6CQCh. 11 - Prob. 7CQCh. 11 - Prob. 8CQCh. 11 - Prob. 9CQCh. 11 - Prob. 10CQ
Ch. 11 - Prob. 11CQCh. 11 - Prob. 12CQCh. 11 - Prob. 13CQCh. 11 - Over time, consumers have less of a need for a...Ch. 11 - For 10 percent of the products in a category, a...Ch. 11 - Anvils Works requires, on average, 2800 tons of...Ch. 11 - Prob. 3PACh. 11 - Prob. 1CCh. 11 - Prob. 2CCh. 11 - Rob Honeycutt created Timbuk2 to offer consumers...
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