OPERATIONS MANAGEMENT (LL)-W/ACCESS
17th Edition
ISBN: 9781260037821
Author: CACHON
Publisher: MCG
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Chapter 14, Problem 16CQ
Summary Introduction
To explain: The likely discovery Person AL will make with respect to the distribution center regarding the on-hand inventory.
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Anna Litic, a new supply chain manager at High Precision Inc. (HP), decides to checksome data on the supply chains she manages. She discovers that HP’s in-transit inventory of electronic components from its Tacoma, Washington, factory to its Asian distribution center (DC) has increased from two quarters ago. However, the distributionof demand at the Asian DC has not changed over this period of time. Anna knows thatthe Asian DC manager is controlling inventory to achieve a fixed in-stock probabilitytarget, so she is happy to see that indeed the in-stock inventory at the Asian DC has alsonot deviated off the target. Anna wonders what has happened to the Asian DC’s averageinventory. What is she likely to discover regarding the Asian DC’s on-hand inventory? a. On-hand inventory has not changed because the in-stock probability has not changedat the Asian DC.b. On-hand inventory has increased because the lead time from Tacoma, Washington, tothe Asian DC must have increased.c. On-hand…
Wayne Hills Hospital in tiny Wayne, Nebraska faces a problem common to large, urban hospitals as well as to small, remote ones like itself. That problem is deciding how much of each type of whole blood to keep in stock. Because blood is expensive and has a limited shelf life (up to 5 weeks under 1-6 degrees Celsius refrigeration), Wayne Hills naturally wants to keep its stock as low as possible. Unfortunately, past disasters such as a major tornado and a train wreck demonstrated that lives would be lost when not enough blood was available to handle massive needs. The hospital administrator wants to set an 85% service level based on demand over the past decade.
Discuss the implications of this decision. What is the hospital's responsibility with regard to stocking lifesaving medicines with short shelf lives? How would you set the inventory level for a commodity such as blood?
. You should provide relevant and meaningful information to demonstrate more in-depth thoughts regarding…
Vetox sells industrial chemicals. One of their inputs can be purchased in either jugs orbarrels. A jug contains one gallon, while a barrel contains 55 gallons. The price pergallon is the same with either container. Vetox is charged a fixed amount per orderwhether it purchases jugs or barrels. The inventory holding cost per gallon per monthis the same with either jugs or barrels. Vetox chooses an order quantity to minimizeordering and holding costs per year. Would Vetox purchase a greater number of gallonswith each order if it purchased with jugs or with barrels?a. They would order a greater number of gallons with barrels.b. They would order the same number of gallons with either container.c. They would order a greater number of gallons with jugs.d. They might order a greater number of gallons with jugs or with barrels, depending onvarious factors like the demand rate, ordering cost, and holding cost.
Chapter 14 Solutions
OPERATIONS MANAGEMENT (LL)-W/ACCESS
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 - You are the owner of Hotspices.com, an online...Ch. 14 - Prob. 5PACh. 14 - Prob. 6PACh. 14 - Prob. 7PACh. 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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