EBK OPERATIONS MANAGEMENT
14th Edition
ISBN: 9781260718447
Author: Stevenson
Publisher: MCG COURSE
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Chapter 12, Problem 36P
Skinner's Fish Market buys fresh Boston bluefish daily for $4.20 per pound and sells it for $5 .70 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $2.40 per pound. Daily demand can be approximated by a
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Students have asked these similar questions
Ram Roy's firm has developed the following supply, demand, cost, and inventory data.
Supply Available
Period
Regular Time
Overtime
Subcontract
Demand Forecast
1
30
15
5
40
2
30
15
5
45
3
30
20
5
50
Initial inventory
20
units
Regular-time cost per unit
$100
Overtime cost per unit
$160
Subcontract cost per unit
$200
Carrying cost per unit per month
$4
Assume that the initial inventory has no holding cost in the first period and backorders are not permitted.
Part 2
Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is
$enter your response here
(enter your response as a whole number).
Cynthia Knott’s oyster bar buys fresh Louisiana oysters for $5 per pound andsells them for $9 per pound. Any oysters not sold that day are sold to her cousin,who has a nearby grocery store, for $2 per pound. Cynthia believes that demandfollows the normal distribution, with a mean of 100 pounds and a standarddeviation of 15 pounds. How many pounds should she order each day?
A grocery store starts each day with a stock of 245 bananas in their produce section. Daily demand for bananas is normally distributed with a mean of 200 and a standard deviation of 30. What is the store's safety stock for bananas?
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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- Weekly demand for printers at a store is normally distributed with a mean of 250 and a standard deviation of 96. The store manager continuously monitors inventory and currently orders 14400 printers each time the inventory drops to 1,000printers. The supply lead time is normally distributed with a mean of 2 weeks and a standard deviation of 1.5 weeks. a.How much safety inventory should this store carry if it wants to provide a CSL of 95%? b.How does the required safety inventory change as the standard deviation of lead time is reduced from 1.5 weeks to zero in intervals of 0.5 weeks? c.What fill rate does the store achieve?arrow_forwardCherry owns a fruit stand at the corner of Espana Street and N. Reyes Street. She buys ripe bananas every day for P20 per hundred and sells them for P50. At the end of the day, all unsold ripe bananas must be used for household consumption. Pas demand has been 500 bananas on 40 days, 600 on 60 days, 700 on 60 days and 800 on 40 days. Using the EV concept, find the optimal daily stock action.arrow_forwardSkinner's fish market buys fresh boston bluefish daiily for $4.20 per pound and sells it for $5.50 per pound. at the end of each business day any remaining bluefish is sold to a producer of cat food for $1.60 per pound. Daily demand can be approximated by a uniform distribution between 200 and 320 pounds. What is the optimal order qunatity.arrow_forward
- Skinner’s Fish Market buys fresh Boston bluefish daily for $4.10 per pound and sells it for $5.60 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $1.60 per pound. Daily demand can be approximated by a uniform distribution between 180 and 350 pounds. The optimal order quantity is pounds (round your response to the nearest integer).arrow_forwardAn online footwear firm Shoe-n-co has four regional warehouses. Demand at each warehouse is normally distributed with a mean of 10,000 per week and a standard deviation of 2,000. Annual holding cost is 25%, and each unit of Prancs rubber shoes costs the company $10. Each order incurs an ordering cost of $1,000 (primarily from fixed transportation cost), and lead time is 1 week. The company wants the probability of stocking out to be no more than 5%. Assume 50 working weeks per year. What is the average inventory held at each warehouse? What is the annual inventory cost (holding + ordering) for Shoe-n-co? On average, how long does a unit of product spend in the warehouse before being sold? .. Little's law, maybe?arrow_forwardAn online footwear firm Shoe-n-co has four regional warehouses. Demand at each warehouse is normally distributed with a mean of 10,000 per week and a standard deviation of 2,000. Annual holding cost is 25%, and each unit of Prancs rubber shoes costs the company $10. Each order incurs an ordering cost of $1,000 (primarily from fixed transportation cost), and lead time is 1 week. The company wants the probability of stocking out to be no more than 5%. Assume 50 working weeks per year. Suppose that Shoe-n-co follows a periodic review policy with a review period of 2 weeks. Recall that the firm has four regional warehouses with demand at each warehouse that is normally distributed with a mean of 10,000 per week and a standard deviation of 2,000. Further, annual holding cost is 25%, and each unit of Prancs rubber shoes costs the company $10. Replenishment lead time is 1 week. The company wants a service level of 95%. Assume 50 working weeks per year. What is the annual…arrow_forward
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