Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 4, Problem 42AP
Summary Introduction
Interpretation:The optimal size of each production run are tibe determined assuming that cards are produced at the rate of 75,000 per week.
Concept Introduction:
Economic order quantity sometimes EOQ refers to the technique that is used by the organizations to determine the quantity and volumeororder needed to fulfill the customer demand while minimizing the cost of the item.
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COMPUTING REORDER POINTS (ROP) FOR IPHONES WITH AND WITHOUT SAFETY STOCKAn Apple store has a demand (D) for 8,000 iPhones per year. The firm operates a 250-day working year.On average, delivery of an order takes 3 working days, but has been known to take as long as 4 days. Thestore wants to calculate the reorder point without a safety stock and then with a one-day safety stock.APPROACH c First compute the daily demand and then apply Equation (12-6) for the ROP.Then compute the ROP with safety stock.
The Big Buy Supermarket stocks Munchies Cereal. Demand for Munchies is 4,000 boxes peryear (365 days). It costs the store $60 per order of Munchies, and it costs $0.80 per box per yearto keep the cereal in stock. Once an order for Munchies is placed, it takes 4 days to receive theorder from a food distributor. Determine The optimal order size
Suppose that your firm manufactures rubber chickens. Monthly demand for the chickens is 32,000 units. Setup costs per order is $85, and the annual holding cost percentage is 17%. The chickens cost $8 to produce and are sold for $18.
a. if you have a warehouse, what is the economic order quantity for the chickens? what is the total of the annual setup and holding cost of this quantity?
b. suppose that you have 25 warehouses instead of one, and total demand is equally distributed among the warehouses. If setup and holding costs are the same in the smaller warehouses as they would be for a single large warehousem what is the EOQ for the chickens at each of the 25 warehouses? what is the total of the annual setup and holding costs at each warehouse? what is the total of the company's annual setup and holding costs?
c. using centralized warehousing as in part a implies that products must be shipped over longer distances. suppose that shipping costs are $0.80 per unit when using one…
Chapter 4 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 4.4 - Prob. 1PCh. 4.4 - Prob. 2PCh. 4.4 - Prob. 3PCh. 4.4 - Prob. 4PCh. 4.4 - Prob. 5PCh. 4.4 - Prob. 6PCh. 4.4 - Prob. 7PCh. 4.4 - Prob. 8PCh. 4.4 - Prob. 9PCh. 4.5 - Prob. 10P
Ch. 4.5 - Prob. 11PCh. 4.5 - Prob. 12PCh. 4.5 - Prob. 13PCh. 4.5 - Prob. 14PCh. 4.5 - Prob. 15PCh. 4.5 - Prob. 16PCh. 4.6 - Prob. 17PCh. 4.6 - Prob. 18PCh. 4.6 - Prob. 19PCh. 4.6 - Prob. 20PCh. 4.7 - Prob. 21PCh. 4.7 - Prob. 22PCh. 4.7 - Prob. 23PCh. 4.7 - Prob. 24PCh. 4.7 - Prob. 25PCh. 4.8 - Prob. 26PCh. 4.8 - Prob. 27PCh. 4.8 - Prob. 28PCh. 4.9 - Prob. 29PCh. 4.9 - Prob. 30PCh. 4 - Prob. 31APCh. 4 - Prob. 32APCh. 4 - Prob. 33APCh. 4 - Prob. 34APCh. 4 - Prob. 35APCh. 4 - Prob. 36APCh. 4 - Prob. 37APCh. 4 - Prob. 38APCh. 4 - Prob. 39APCh. 4 - Prob. 40APCh. 4 - Prob. 41APCh. 4 - Prob. 42APCh. 4 - Prob. 43APCh. 4 - Prob. 44APCh. 4 - Prob. 45AP
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