Loose Leaf for Operations Management in the Supply Chain: Decisions and Cases 7e
7th Edition
ISBN: 9781260151954
Author: SCHROEDER, Roger G
Publisher: McGraw-Hill Education
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Chapter 14, Problem 13P
eXcel 13. The Cover-up Drapery Company carries four types of fabric with the following characteristics:
| Type | Annual Demand (yards) | Item Cost per Yard |
| 1 | 300 | $20 |
| 2 | 250 | $18 |
| 3 | 100 | $12 |
| 4 | 200 | $8 |
Assume that the items are to be ordered together from the same supplier at an ordering cost of $20 per order and an annual carrying cost of 20 percent. Also assume 300 working days in a year.
- a. If a P system is used, what is the optimal ordering interval in days?
- b. How much of each type of carpet would be ordered when a combined order is placed?
- c. What is the effect on the ordering interval of changing the carrying cost to 25, 30, and 35 percent?
- d. Why can’t these carpets be ordered by using a Q system?
- e. Classify the four items above as A, B, or C inventory items.
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Students have asked these similar questions
1. Which of the following costs do not come under inventory carrying cost calculation?
a) Investment in a software for updating stock position online
b) Investment in stores space
c) Salaries of procurement personnel
d) Cost of maintaining the inventory stocks
2. Which of the following will have lesser bullwhip effect in a supply chain?
a) Supply Chain co-ordination
b) Opening more stocking points closer to the point of consumption
c) Empowering the lower echelons of the inventory to take decisions on fulfilling the demand
d) All of the above
3. What is the effect of delayed differentiation strategy?
a) The number of variants offered will be reduced
b) The inventory carrying costs will come down
c) Production Planning and Control will become more difficult
d) Bullwhip effect will be more pronounced
1)Which of the following will have lesser bullwhip effect in a supply chain?
A)Supply Chain co-ordination
B)Opening more stocking points closer to the point of consumption
C)Empowering the lower echelons of the inventory to take decisions on fulfilling the demand
D)All of the above
2)What is the effect of delayed differentiation strategy?
A)The number of variants offered will be reduced
B)The inventory carrying costs will come down
C)Production Planning and Control will become more difficult
D)Bullwhip effect will be more pronounced
3)What changes can you envisage in economic order quantity based planning when the demand for the item increases by 5%?
A)The economic order quantity will come down by √(5%)
B)The carrying cost will increase by 1/ √(5%)
C)The total cost of the plan will go up by √(5%)
D)The total cost of the plan will go up by 5%
Anvils Works’ requires, on average, 2800 tons of aluminum each week, with a standarddeviation of 1000 tons. The lead time to receive its orders is 10 weeks. The holdingcost for one ton of aluminum for one week is $11. It operates with a 0.98 in-stockprobability.a. On average, how many tons does it have on order?b. On average, how many tons does it have on hand?c. If its average inventory was 5000 tons, what would be its average holding cost perweek?d. If its average inventory was 10,000 tons, what would be its average holding cost perton of aluminum?e. Suppose its on-hand inventory is 4975 tons, on average. What in-stock probabilitydoes it offer to its customers?
Chapter 14 Solutions
Loose Leaf for Operations Management in the Supply Chain: Decisions and Cases 7e
Ch. 14.S - eXcel Suppose that for problem 1 in the chapter,...Ch. 14.S - Prob. 2PCh. 14.S - For problem 2 in the chapter, suppose the Grinell...Ch. 14.S - A producer of electronic parts wants to take...Ch. 14 - Identify the different types of inventories (raw...Ch. 14 - Why are stockout costs difficult to determine?...Ch. 14 - What is the difference between a requirements...Ch. 14 - Compare and contrast the management of finished...Ch. 14 - For a given service level, why does a P system...Ch. 14 - Under what circumstances might CPFR be useful, and...
Ch. 14 - Prob. 7DQCh. 14 - What is the appropriate role of inventory turnover...Ch. 14 - Suppose you are managing a chain of retail...Ch. 14 - The Always Fresh Grocery Store carries a...Ch. 14 - The Grinell Machine Shop makes a line of metal...Ch. 14 - The local Toyota dealer has to decide how many...Ch. 14 - Prob. 4PCh. 14 - The famous Widget Company sells widgets at the...Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - An electronics retailer carries a particular...Ch. 14 - An electronics retailer carries a particular...Ch. 14 - The local Toyota dealer has to decide how many...Ch. 14 - The Suregrip Tire Company carries a certain type...Ch. 14 - The Suregrip Tire Company carries a certain type...Ch. 14 - eXcel 13. The Cover-up Drapery Company carries...Ch. 14 - Suppose you are the supplier of the Cover-up...
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