OPERATION MANAGEMENT
2nd Edition
ISBN: 9781260242423
Author: CACHON
Publisher: MCG
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Chapter 14, Problem 9PA
a)
Summary Introduction
To determine: The expected on-hand inventory.
b)
Summary Introduction
To determine: The expected on-order inventory.
c)
Summary Introduction
To determine: The in-stock probability.
d)
Summary Introduction
To determine: The stockout probability.
e)
Summary Introduction
To determine: The order-up-to level.
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Students have asked these similar questions
Especially for wholesalers and retailers involved in the distribution channels for consumer packaged goods, inventory
management is a careful balancing act between:
supply and demand.
controlled supply and variable demand.
lower inventory levels and acceptable customer service levels.
variable inventory levels and consistent customer service levels.
You are running the supply chain for a grocery store operating across Upstate
Souun Carolina. You operate a central warehouse and have multiple stores. For each of the
following situations determine if it would be best to operate inventory for the product that is
pooled at your central warehouse or determined individually by each retail store. Provide at
least 1 sentence discussing your choice.
(a) The demand for boxes of Nutty Bars at each store during a week is i.i.d. with mean
u = 1000 and standard deviation o =
Nutty Bars are high compared to holding costs for Nutty Bars.
10. Transshipment costs between the stores for
(b) The demand for Fudge Rounds at each store during a week is i.i.d. with mean u = 200
75. Transhipment costs between the stores for Fudge
and standard deviation o
Rounds are relatively small compared to holding costs.
A retail outlet sells a seasonal product for $10 per unit. The cost of the product is $8 per unit. All units not sold during the regular season for half the retail price in an end-of-season clearance sale. Assume that the demand for the product is uniformly distributed between 200 and 800. a. What is the recommended ordering quantity? b. What is the probability of a stockout using your order quantity in (a)? c. To keep customers happy and returning to the store later, the owner feels that stockouts should be avoided if at all possible. What is your recommended order quantity if the owner is willing to tolerate a 0.15 probability of stockout? d. Using your answer to (c), what is the goodwill cost you are assigning to a stockout?
Chapter 14 Solutions
OPERATION MANAGEMENT
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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Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY