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By Jay Heizer Barry Render Operations Management, Sustainability and Supply Chain Management (11th) [Paperback]
7th Edition
ISBN: 9781269261630
Author: Jay Heizer
Publisher: PEARSON
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Textbook Question
Chapter 12, Problem 26P
Question
••• 12.26 Emery Pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. Emery uses 800 pounds per month of the chemical, estimates the holding cost to be 50% of the purchase price (because of spoilage), and estimates order costs to be $50 per order. The cost
- a. What is the economic order quantity for each supplier?
- b. What quantity should be ordered, and which supplier should be used?
- c. What is the total cost for the most economic order size?
- d. What factor(s) should be considered besides total cost?
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Question 7
Firm develop new products to
a.gain market share and build brand equity
b.keep their research and development teams gainfully employed
c.take up slack in capacity
d.gain first mover advantage and eliminate waste
Question 8
Economic order quantity (EOQ) assumes all of the following conditions apply
.demand is known and is constant over time
.there are no shortages allowed.lead time for the receipt of orders is constant.Order quantity is received all at once
true or false?
question 10
Trade-offs in the new product development relate to
A.Product / service design, time to market and profitability
B.Proft. Expenditure and market share
C.Time. cost and quality
D.Market reach, product / service design and timing
Question 6 (ABC Analysis)
Use the information provided below and classifies the inventory items according to the ABC classification.
Item:
Annual demand:
Unit Price N$:
1
1000
0.50
2
100
250
3
50
1000
4
50
800
5
300
50
6
500
10
7
500
7
QUESTION 3
Given the following inventory information, construct an (a) ABC analysis by annual dollar usage, (b) ABC analysis by current inventory value, and (c) an ABC inventory matrix. Is the firm stocking the correct inventories?
Item Number
Unit Cost
Annual Usage
Phy Inv
B8867
6
100
8,000
J1252
5.25
6,500
120
K9667
0.88
4,000
1,000
L2425
1
1,500
375
M4554
5.5
2,000
500
T6334
70
500
800
W9856
0.75
800
20,000
X2215
1.5
8,000
2,000
Y3214
32
1,000
500
Y6339
4
3,500
125
Calculate the annual usage for K9667.
Chapter 12 Solutions
By Jay Heizer Barry Render Operations Management, Sustainability and Supply Chain Management (11th) [Paperback]
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...
Ch. 12 - What is meant by service level?Ch. 12 - Explain the following: All things being equal, the...Ch. 12 - Describe the difference between a fixed-quantity...Ch. 12 - Explain what is meant by the expression robust...Ch. 12 -
15. What is “safety stock”? What does safety...Ch. 12 - When demand is not constant, the reorder point is...Ch. 12 - How are inventory levels monitored in retail...Ch. 12 - State a major advantage, and a major disadvantage,...Ch. 12 - L. Houts Plastics is a large manufacturer of...Ch. 12 - Boreki Enterprises has the following 10 items in...Ch. 12 - Jean-Marie Bourjollys restaurant has the following...Ch. 12 - Lindsay Electronics, a small manufacturer of...Ch. 12 - William Bevilles computer training school, in...Ch. 12 - • 12.6 If D = 8,000 per month, S = $45 per order,...Ch. 12 - Henry Crouchs law office has traditionally ordered...Ch. 12 - Matthew Liotines Dream Store sells beds and...Ch. 12 - Southeastern Bell stocks a certain switch...Ch. 12 - Lead time for one of your fastest-moving products...Ch. 12 - Annual demand for the notebook binders at Duncans...Ch. 12 - Thomas Kratzer is the purchasing manager for the...Ch. 12 - Joe Henrys machine shop uses 2,500 brackets during...Ch. 12 - Abey Kuruvilla, of Parkside Plumbing, uses 1,200...Ch. 12 - ••• 12.15 M. Cotteleer Electronics supplies...Ch. 12 - •• 12.16 Race One Motors is an Indonesian car...Ch. 12 - Radovilsky Manufacturing Company, in Hayward,...Ch. 12 - Arthur Meiners is the production manager of...Ch. 12 - Cesar Rego Computers, a Mississippi chain of...Ch. 12 - Bell Computers purchases integrated chips at 350...Ch. 12 - Wang Distributors has an annual demand for an...Ch. 12 - Question 12.22 The catering manager of La Vista...Ch. 12 - Prob. 23PCh. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - Question 12.26 Emery Pharmaceutical uses an...Ch. 12 - Question 12.27 Barbara Flynn is in charge of...Ch. 12 - Question 12.28 Based on available information,...Ch. 12 - Question 12.29 Authentic Thai rattan chairs...Ch. 12 - Question 12.30 Tobacco is shipped from North...Ch. 12 - Prob. 31PCh. 12 - Question 12.32 Chicagos Hard Rock Hotel...Ch. 12 - Question 12.33 First Printing has contracts with...Ch. 12 - Prob. 34PCh. 12 - Prob. 35PCh. 12 - Question 12.36 Cynthia Knotts oyster bar buys...Ch. 12 - Question 12.37 Henrique Correas bakery prepares...Ch. 12 - Question 12.38 University of Florida football...Ch. 12 - Prob. 39PCh. 12 - Question 12.40 A gourmet coffee shop in downtown...Ch. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Parker Hi-Fi Systems Parker Hi-Fi Systems, located...Ch. 12 - Parker Hi-Fi Systems Parker Hi-Fi Systems, located...Ch. 12 - Parker Hi-Fi Systems Parker Hi-Fi Systems, located...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Inventory Control at Wheeled Coach Video Case...Ch. 12 - Prob. 2.2VCCh. 12 - Prob. 2.3VC
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- QUESTION 10 Economic Order Quantity (EOQ), is the order quantity that ... over the planning horizon. minimizes total ordering costs minimizes total carrying costs minimizes total inventory costs is required as safety stockarrow_forwardQuestion 28 Firm A purchases cases of fertilizer for its lawn-care business from a supplier who charges $40 per order and $60 per case. Each case consists of four bags of fertilizer. Firm A needs 1800 bags of fertilizer a year. Firm A's annual holding costs are 25%. What is Firm A's economic order quantity? Group of answer choices 64 49 46 40arrow_forwardQuestion2: A company that sells fruit juices sells 1250 cases of fruit juice from cases priced at $50 per case in a month. The business is in city x and juices are ordered from city y. Each order costs the business $250. Storage costs are 20% of a case of fruit juice. According to this;a) the economic order quantity of the enterprise?b) How many days is the time between two orders?c) What is the total inventory cost of the business, including the acquisition costs, in dollars/month?arrow_forward
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- QUESTION 1 The sales of Vintage company is 80,000 units per year. The percentage of storage is 20 percent of inventory value. The purchase price is RM20 per unit and the ordering cost of each order is RM1,000. Lead time is 2 weeks. Assume that there are 52 weeks in your calculation. Pleaase Provide Calculation Step Calculate: a) EOQ b) Total Carrying Cost c) Total Ordering Cost d) Total Inventory Cost e) Reorder point f) How many placements of order per year?arrow_forwardQUESTION 2a. A manufacturing company Glass Items Manufacturing Limited (GIM), operating under acontinuous review system, has an average demand of 150 units per week for the item it produces.The standard deviation in weekly demand is 30 units. The lead-time for the item is seven weeks,and it costs the company $70 to process each order. The holding cost for each unit is $30 per year.The company operates 52 weeks per year.A normal distribution table is appended to this assignment. (ii) Use the information in 2 a. above. What is the Reorder Point, if the company has a policy ofmaintaining a 98% cycle-service level? Please answer the question abovearrow_forwardQuestion 2Orange Inn Restaurant uses 35,000 units of flour mix per year which has a price of $20 per unit.The annual costs of storage are $0.70 per unit. The cost to place an order is $1,000. A. Calculate the:i. economic order quantity (EOQ) ii. number of orders iii. average stock iv. annual ordering cost v. annual carrying cost vi. total annual inventory cost vii. total annual cost of items and inventoryarrow_forward
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