EBK OPERATIONS MANAGEMENT
14th Edition
ISBN: 9781260718447
Author: Stevenson
Publisher: MCG COURSE
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Question
Chapter 12, Problem 17DRQ
Summary Introduction
To identify: Some of the ways in which a company can reduce its need for inventories.
Introduction:
Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Inventory of goods which has short life span has to be given high attention which can be handled using single period model.
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Discuss ways (at least 3) in which a company can reduce the need for inventories?
Can the ABC principle be applied to manufacturing component inventories? Discuss.
Will’s Welded Widgets (WWW) makes its Q Model from components R, S, and T. Component R is made from 2 units of component X and 2 unit of component Y. Component T is made from 1 unit of component V and 2 units of component Z.
Calculate the gross requirements for each of the components when the company plans to build 70 of its Q Model if you have these inventories: 70 units of component T and 110 units of component R, using the given information:
Item
Usage per Parent
Q
-
R
2
S
2
T
1
X
2
Y
2
V
1
Z
2
Q
R S T
X Y V Z
Put the answers down into the table: (If answer is zero, please enter 0, do not leave any fields blank.)
Product
Gross Requirements
Q…
Chapter 12 Solutions
EBK OPERATIONS MANAGEMENT
Ch. 12.3 - Prob. 1RQCh. 12 - What are the primary reasons for holding...Ch. 12 - What are the requirements for effective inventory...Ch. 12 - Briefly describe each of the costs associated with...Ch. 12 - What potential benefits and risks do RFID tags...Ch. 12 - Prob. 5DRQCh. 12 - Prob. 6DRQCh. 12 - a. List the major assumptions of the EOQ model. b....Ch. 12 - Explain briefly how a higher carrying cost can...Ch. 12 - What is safety stock, and what is its purpose?
Ch. 12 - Prob. 10DRQCh. 12 - What is meant by the term service level? Generally...Ch. 12 - Describe briefly the A-B-C approach to inventory...Ch. 12 - The purchasing agent for a company that assembles...Ch. 12 - Explain how a decrease in setup time can lead to a...Ch. 12 - What is the single-period model, and under what...Ch. 12 - Can the optimal stocking level in the...Ch. 12 - Prob. 17DRQCh. 12 - What trade-offs are involved in each of these...Ch. 12 - Who needs to be involved in inventory decisions...Ch. 12 - How has technology aided inventory management? How...Ch. 12 - To be competitive, many fast-food chains began to...Ch. 12 - As a supermarket manager, how would you go about...Ch. 12 - Sam is at the post office to mail a package. After...Ch. 12 - Give two examples of unethical conduct involving...Ch. 12 - Prob. 1PCh. 12 - a. The following table contains figures on the...Ch. 12 - A bakery buys flours in 25-pound bags. The bakery...Ch. 12 - A large law firm uses an average of 40 boxes of...Ch. 12 - Garden Variety Flower Shop uses 750 clay pots a...Ch. 12 - A produce distributor uses 800 packing crates a...Ch. 12 - A manager receives a forecast for next year....Ch. 12 - A food processor uses approximately 27,000 glass...Ch. 12 - The Friendly Sausage Factory (FSF) can produce hot...Ch. 12 - A chemical firm produces sodium bisulfate in...Ch. 12 - A company is about to begin production of a new...Ch. 12 - Prob. 12PCh. 12 - A mail-order house uses 18,000 boxes a year....Ch. 12 - A jewelry firm buys semiprecious stones to make...Ch. 12 - A manufacturer of exercise equipment purchases the...Ch. 12 - A company will begin stocking remote control...Ch. 12 - A manager just received a new price list from a...Ch. 12 - A newspaper publisher uses roughly 800 feet of...Ch. 12 - Given this information: Expected demand during...Ch. 12 - Given this information: Lead-time demand = 600...Ch. 12 - Demand for walnut fudge ice cream at the Sweet...Ch. 12 - The injection molding department of a company uses...Ch. 12 - A company uses 85 circuit boards a day in a...Ch. 12 - One item a computer store sells is supplied by a...Ch. 12 - The manager of a car wash received a revised price...Ch. 12 - A small copy center uses five 500-sheet boxes of...Ch. 12 - Ned's Natural Foods sells unshelled peanuts by the...Ch. 12 - Regional Supermarket is open 360 days per year....Ch. 12 - A service station uses 1,200 cases of oil a year....Ch. 12 - Caring Hospital's dispensary reorders doses of a...Ch. 12 - A drugstore uses fixed-order cycles for many of...Ch. 12 - Prob. 32PCh. 12 - Prob. 33PCh. 12 - Demand for jelly doughnuts on Saturdays at Don's...Ch. 12 - A public utility intends to buy a turbine as part...Ch. 12 - Skinner's Fish Market buys fresh Boston bluefish...Ch. 12 - A small grocery store sells fresh produce, which...Ch. 12 - Demand for devil's food whipped-cream layer cake...Ch. 12 - Prob. 39PCh. 12 - Demand for rug-cleaning machines at Clyde's...Ch. 12 - A manager is going to purchase new processing...Ch. 12 - A Las Vegas supermarket bakery must decide how...Ch. 12 - Offwego Airlines has a daily flight from Chicago...Ch. 12 - UPD Manufacturing produces a range of health care...Ch. 12 - Prob. 1.2CQCh. 12 - Prob. 2.1CQCh. 12 - SARAH LUBBERS AND CHRIS RUSCHE, GRAND VALLEY STATE...Ch. 12 - SARAH LUBBERS AND CHRIS RUSCHE, GRAND VALLEY STATE...Ch. 12 - Prob. 3.3CQCh. 12 - SARAH LUBBERS AND CHRIS RUSCHE, GRAND VALLEY STATE...Ch. 12 - Prob. 3.5CQCh. 12 - Prob. 1OTQCh. 12 - Prob. 2OTQCh. 12 - Prob. 3OTQCh. 12 - Prob. 4OTQ
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Give the four costs associated with inventories and give examples of each.arrow_forwardInput Area Cost Per Hour $1500.00 Outage Duration (hours) 3 Output Area Total Cost for Outage $4500.00 One-Variable Data Table: Cost Outage Impact Analysis Duration (hr) (Cost) 1 $1500.00 1.5 $2250.00 2 $3000.00 2.5 $3750.00 3 $4500.00 3.5 $5250.00 4 $6000.00 4.5 $6750.00 5 $7500.00 Given the data above Which What If Analysis tool is the worksheet using? Provide a description of the What If Analysis tool and why it was used in the worksheet. Interpret what the data means. Discuss what it means for the business.arrow_forwardWhat comprises the cost of inventories?arrow_forward
- Dumping Inventory: Should This Be Part of Your Presentation? Ron Krapa is sales manager at Electra Toy Company, a retail toy store specializing in electronic games. Ron's brother-in-law Jerry works for the company that manufactures the Lasertron electronic game. Jerry mentioned to Ron that the company is coming out with the Lasertron II in three months. However, it will not be announced to retailers for another two months. Lasertron II will have advanced technology over the present model. The new game cartridges will not be compatible with Lastertron I. Once Lasertron II comes on the market, consumers will want it and not the present model. Jerry explains that for any of the present models the retailer returns after the introduction of Lasertron II, the manufacturer will refund to the retailer the retailer's original cost of Lastertron I. The Way to Make Extra Sales Kapra has decided to run a special sale offering 20 percent of the regular price of Lasertron I. With 1,000 cases…arrow_forwardWhich of the following are basic inventories for a manufacturer? a. indirect materials, goods in process, and raw materials b. finished goods, raw materials, and direct materials c. raw materials, goods in process, and finished goods d. raw materials, factory overhead, and direct laborarrow_forwardWhy do storage businesses put lockers up for sale without first disclosing what's inside the containers?arrow_forward
- Why most companies still like to hold inventories?arrow_forwardWhich item would be considered an order winner in an automobile developed for high-end users? Voice-activated music system Compact disc players Full-sized spare tire Air bagsarrow_forwardExplain how the ABC principal be applied to manufacturing component inventories ?arrow_forward
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