Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
12th Edition
ISBN: 9780134742205
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 14, Problem 9P
Summary Introduction
Interpretation: The fleet size that contributes to yielding the lowest expected monthly costs for the company should be calculated.
Concept Introduction: Every mile a truck runs costs about $0.90 for maintenance. And, the rental cost of each truck per mile is $1.40.
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Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of
30
units and is valued at
$60
per unit. Inbound shipments from vendor 1 will average
330
units with an average lead time (including ordering delays and transit time) of
4
weeks. Inbound shipments from vendor 2 will average
450
units with an average lead time of
3
weeks.
Ruby-Star operates 52 weeks per year; it carries a
4-week
supply of inventory as safety stock and no anticipation inventory.
A. the average aggregate inventory value of the product if ruby star used vendor 1 exclusively is $_____ (enter your response as a whole number)
B. the average aggregate inventory value of the product if ruby sta used vendor 2 exclusively is $______ (enter your response as a whole number)
C. how would your analysis change if average weekly demand increased to 140 units per week?
the average aggregate inventory value of the product if ruby star used vendor 1…
Chapter 14 Solutions
Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Prob. 5DQCh. 14 - Prob. 1PCh. 14 - Eight Flags operates several amusement parks in...Ch. 14 - Prob. 3PCh. 14 - Beagle Clothiers uses a weighted score for the...Ch. 14 - Prob. 5P
Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Acadia Logistics anticipates that it will need...Ch. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 1VCCh. 14 - Prob. 2VCCh. 14 - Prob. 3VCCh. 14 - Prob. 4VCCh. 14 - Prob. 1CCh. 14 - Prob. 2CCh. 14 - Prob. 3C
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