Operations Management
13th Edition
ISBN: 9780136860419
Author: Lee Krajewski
Publisher: Pearson Education
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Textbook Question
Chapter 11, Problem 5P
Question:
•• 11.5 Baker Mfg. Inc. (see Table 11.9) wishes to compare its inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory.
TABLE 11.9 For Problems 11.5 and 11.6
| ARROW DISTRIBUTING CORP. | |
| Net revenue | $16,500 |
| Cost of sales | $13,500 |
| Inventory | $1,000 |
| Total assets | $8,600 |
| BAKER MFG. INC. | |
| Net revenue | $27,500 |
| Cost of sales | $21,500 |
| Inventory | $1,250 |
| Total assets | $16,600 |
- a. What is Baker’s inventory turnover?
- b. What is Baker’s percent of assets committed to inventory?
- c. How does Baker’s performance compare to the industry leaders?
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Question 7
A rightward shift in the demand curve could be caused by
a. a increase in income, assuming the good is inferior.
b. a decrease in income, assuming the good is inferior.
c. buyers expecting the price of the good to fall in the near future.
d. an increase in the price of a complement.
Question 6
Aceron Bhd produces three products A, B and C. The unit cost and selling prices are as shown
below:
Product
Selling price
Direct material
Direct labour
Variable production overhead
Fixed Production Overhead per month RM5,000
RM29
6
(a)
(b)
(c)
9
5
B
RM31
5
10
6
с
RM30
8
4
8
Product A requires 3 hours to produce, B 5 hours and C 1 hour. Owing to capacity restrictions,
total labour hours will be limited to 12,000 hours in the following period.
The demand for the coming month is 2,000 units for each of the products.
Required:
Calculate the profits if there is no restriction on the labour hours.
Prepare the optimum production plan if the labour hours is restricted as above.
Calculate the profits of your revised plan
Question 2
Alpha Electronics (AE) is a large manufacturer of electronics products. The company sells about
1,000 high-value products to 10,000 customers all over the world. Market competition forces AE to
commit to a short order fulfilment lead time to its customers and the committed lead time is typically
much shorter than its manufacturing lead time.
(a)
AE is looking for a suitable supply chain integration strategy for improving its operations.
Discuss the pros and cons of the three common supply chain integration strategies and suggest
the most appropriate one for AE.
(b)
AE is planning to reduce the number of distribution centres in its distribution network from
10 to 5. Estimate the minimum number of decision variables for AE's distribution problem
and suggest an approach that AE can simplify the mathematical model for optimizing the
distribution network. Discuss the advantages and disadvantages of the approach.
(c)
AE is exploring the feasibility of forming a strategic alliance…
Chapter 11 Solutions
Operations Management
Ch. 11.S - Prob. 1DQCh. 11.S - Question: 2. It the probability of a super-event...Ch. 11.S - Question: 3. If the probability of a super-event...Ch. 11.S - Question: 4. Describe some ramifications of the...Ch. 11.S - Question: 5. Describe causes of the bullwhip...Ch. 11.S - Question: 6. Describe how the bullwhip measure can...Ch. 11.S - Question: 7. Describe some potentially useful...Ch. 11.S - Prob. 8DQCh. 11.S - Question: 9. Describe some disadvantages of using...Ch. 11.S - Question S11.1 How would you go about attempting...
Ch. 11.S - Question S11.2 Phillip Witt, president of Witt...Ch. 11.S - Question S11.3 Still concerned about the risk in...Ch. 11.S - Question S11.4 Johnson Chemicals is considering...Ch. 11.S - Prob. 5PCh. 11.S - Question S11.6 Consider the supply chain...Ch. 11.S - Question S11.7 Over the past 5 weeks, demand for...Ch. 11.S - Prob. 8PCh. 11.S - Prob. 9PCh. 11.S - Question S11.10 As purchasing agent for Woolsey...Ch. 11.S - Question S11.11 Using the data in Problem S11.10,...Ch. 11.S - Question S11.13 Your options for shipping 100,000...Ch. 11.S - Prob. 17PCh. 11.S - Prob. 18PCh. 11.S - Question S11.16 Recently, Abercrombie Fitch (AF)...Ch. 11.S - Prob. 12PCh. 11.S - Prob. 13PCh. 11.S - Prob. 14PCh. 11.S - Prob. 20PCh. 11.S - Prob. 21PCh. 11.S - Prob. 22PCh. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - Prob. 3DQCh. 11 - Prob. 4DQCh. 11 - Question 5. What is vertical integration? Give...Ch. 11 - Question 6 What are three basic approaches to...Ch. 11 - Prob. 7DQCh. 11 - Question 8. What is the difference between...Ch. 11 - Question 9. What is CPFR?Ch. 11 - Question 10. What is the value of online auctions...Ch. 11 - Question: 11. Explain how FedEx uses the Internet...Ch. 11 - Question 12. How does Walmart use drop shipping?Ch. 11 - Prob. 13DQCh. 11 - Question: 14. What can purchasing do to implement...Ch. 11 - Question 15. What is e-procurement?Ch. 11 - Prob. 16DQCh. 11 - Question: 17. What is SCOR, and what purpose does...Ch. 11 - Question: 11.1 Choose a local establishment that...Ch. 11 - Prob. 4PCh. 11 - Question: 11.3 Hau Lee Furniture, Inc., described...Ch. 11 - Question: 11.4 Kamal Fatehl, production manager...Ch. 11 - Question: 11.5 Baker Mfg. Inc. (see Table 11.9)...Ch. 11 - Question: 11.6 Arrow Distributing Corp. (see...Ch. 11 - Question: 11.7 The grocery industry has an annual...Ch. 11 - Question: 11.8 Mattress Wholesalers, Inc., is...Ch. 11 - Prob. 9PCh. 11 - Prob. 10PCh. 11 - Prob. 11PCh. 11 - Question: Dardens Global Supply Chains Video Case...Ch. 11 - Prob. 2CSCh. 11 - Question: Dardens Global Supply Chains Video Case...Ch. 11 - Prob. 4CSCh. 11 - Question Supply Chain Management at Regal Marine ...Ch. 11 - Question Supply Chain Management at Regal Marine ...Ch. 11 - Question Supply Chain Management at Regal Marine ...Ch. 11 - Prob. 2.1VCCh. 11 - Prob. 2.2VCCh. 11 - Prob. 2.3VCCh. 11 - Prob. 2.4VC
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