Operations Management
13th Edition
ISBN: 9780135173626
Author: HEIZER, Jay, RENDER, Barry, Munson, Chuck
Publisher: Pearson,
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Textbook Question
Chapter 12, Problem 43P
Question
••• 12.29 Authentic Thai rattan chairs (shown in the photo) are delivered to Gary Schwartz’s chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without safety stock, is 200 chairs. Carrying cost is $30 per unit per year, and the cost of a stockout is $70 per chair per year. Given the following demand probabilities during the lead time, how much safety stock should be carried?
DEMAND DURING LEAD TIME | PROBABILITY |
0 | 0.2 |
100 | 0.2 |
200 | 0.2 |
300 | 0.2 |
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Question 6 (ABC Analysis)
Use the information provided below and classifies the inventory items according to the ABC classification.
Item:
Annual demand:
Unit Price N$:
1
1000
0.50
2
100
250
3
50
1000
4
50
800
5
300
50
6
500
10
7
500
7
I) annual usage - 1151 pcs
Placement cost - 91 Rupees
Storage cost - 8 Rupees
Compute the reorder quantity/ EOQ ?
Q2. From the figures given below, calculate Economic Order Quantity (EOQ) and Total cost at EOQ?
10,000 kgs
Rs. 2 per kg
Buying cost per order Rs. 50
Carrying and storage cost 8%||
Total consumption of material per year
Unit cost of material
Chapter 12 Solutions
Operations Management
Ch. 12 - Question 1. Describe the four types of inventory.Ch. 12 - Question
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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 -
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