OPERATIONS MANAGEMENT LL W/CONNECT CODE
2nd Edition
ISBN: 9781266520037
Author: CACHON
Publisher: MCG CUSTOM
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Chapter 14, Problem 11PA
a)
Summary Introduction
To determine: The expected on-hand inventory.
b)
Summary Introduction
To determine: The in-stock probability.
c)
Summary Introduction
To determine: The average on-order inventory.
d)
Summary Introduction
To determine: The average on-order inventory.
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Cheryl Druehl has asked you to help her determinethe best ordering policy for a new product. The demand for thenew product has been forecasted to be about I ,000 units annually.To help you get a handle on the carrying and ordering costs,Cheryl has given you the list of last year's costs. She thought thatthese costs might be appropriate for the new product. She also told you that these data were compiled for 10,000 inventoryitems that were carried or held during the year. You havealso determined that 200 orders were placed last year. Your job as a new opera tions management graduate is to help Cheryl determinethe economic order quantity for the new product.
Bakery A sells bread for $2 per loaf that costs
$0.50 per loaf to make. Bakery A gives an 80%
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Demand for the bread is normally distributed
with a mean of 300 and a standard deviation of
30. What order quantity maximizes expected
profit for Bakery A? (use the normal distribution
table posted on Canvas and round up to the
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A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy for its
1-irons, which have the following characteristics:
> Demand (D) = 2,000 units/year
> Demand is normally distributed
> Standard deviation of weekly demand = 2 units
> Ordering cost = $30/order
> Annual holding cost (H) = $5.00/unit
> Desired cycle-service level = 85%
> Lead time (L) = 4 weeks
Refer to the standard normal table for z-values.
a. If the company uses a periodic review system, P should be 3.87 weeks. (Enter your response rounded to the
nearest whole number.)
T should be units. (Enter your response rounded to the nearest whole number.)
Chapter 14 Solutions
OPERATIONS MANAGEMENT LL W/CONNECT CODE
Ch. 14 - Demand in each period follows the same normal...Ch. 14 - Prob. 2CQCh. 14 - For products with slow-moving demandfor example,...Ch. 14 - Prob. 4CQCh. 14 - Prob. 5CQCh. 14 - Prob. 6CQCh. 14 - Prob. 7CQCh. 14 - Prob. 8CQCh. 14 - If the target in-stock probability increases, then...Ch. 14 - Prob. 10CQ
Ch. 14 - Prob. 11CQCh. 14 - Prob. 12CQCh. 14 - Prob. 13CQCh. 14 - Prob. 14CQCh. 14 - Prob. 15CQCh. 14 - Prob. 16CQCh. 14 - Prob. 17CQCh. 14 - Prob. 18CQCh. 14 - Prob. 19CQCh. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Prob. 3PACh. 14 - Prob. 4PACh. 14 - You are the owner of Hotspices.com, an online...Ch. 14 - Prob. 6PACh. 14 - Prob. 7PACh. 14 - Prob. 8PACh. 14 - Prob. 9PACh. 14 - Prob. 10PACh. 14 - Prob. 11PACh. 14 - Prob. 1CCh. 14 - Prob. 2CCh. 14 - Prob. 3CCh. 14 - CASE WARKWORTH FURNITURE1 Warkworth Furniture...Ch. 14 - CASE WARKWORTH FURNITURE1 Warkworth Furniture...
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