Operations Management, Student Value Edition

11th Edition

ISBN: 9780132863308

Author: Jay Heizer

Publisher: PEARSON

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Textbook Question

Chapter 12, Problem 10P

Lead time for one of your fastest-moving products is 21 days. Demand during this period averages 100 units per day.

a. What would be an appropriate reorder point?
b. How does your answer change if demand during lead time doubles?
c. How does your answer change if demand during lead time drops in half?

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Chapter 12, Problem 9P

Chapter 12, Problem 11P

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Lead time for one of your fastest-moving products is 20 days. Demand during this period averages 110 units per day. Part 2 a) What would be an appropriate reorder point? _______ units (enter your response as a whole number). b) How does your answer change if demand during lead time doubles? c) How does your answer change if demand during lead time drops in half?

Lead time for one of your fastest-moving products is 19 days. Demand during this period averages 90 units per day. a) What would be an appropriate reorder point? units (enter your response as a whole number). b) How does your answer change if demand during lead time doubles? units (enter your response as a whole number). c) How does your answer change if demand during lead time drops in half? units (enter your response as a whole number).

Demand for a popular athletic shoe is nearly constant at 1600 pairs per week for a regional division of a national retailer. The cost per pair is $64. It costs $75 to place an order, and annual holding costs are charged at 25% of the cost per unit. The lead time is 3 weeks. One year has 52 weeks.a. What is the Economic Order Quantity?b. What is the reorder point?c. What is the cycle time?d. What is the total annual cost?

Chapter 12 Solutions

Operations Management, Student Value Edition

Ch. 12 - Question 1. Describe the four types of inventory.Ch. 12 - Question 2. With the advent of low-cost...Ch. 12 - Question 3. What is the purpose of the ABC...Ch. 12 - Question 4. Identify and explain the types of...Ch. 12 - Question 5. Explain the major assumptions of the...Ch. 12 - Question 6. What is the relationship of the...Ch. 12 - Question 7. Explain why it is not necessary to...Ch. 12 - Question 8. What are the advantages of cycle...Ch. 12 - What impact does a decrease in setup time have on...Ch. 12 - When quantity discounts are offered, why is it not...

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Solution Summary: The author explains the reorder point, which is the level of the firm's inventory which triggers it to act and replenish the stock.

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Chapter 12 Solutions