EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 8220102480681
Author: Olsen
Publisher: WAVELAND
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Chapter 4.5, Problem 11P
Summary Introduction
To determine:
Graphical representation of optimal quantity, average order and lead time
Introduction:
Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.
Lead time is the time between when order is placed and its production is completed.
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Suppose the following item is being managed using a fixed-order quantity model with safety stock.
Annual Demand = 100,000 units
Order quantity = 30,000 units
Safety stock = 4000 units
What are the average inventory level and inventory turnover for this item?
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.
Jill's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every three weeks. Data for both products are as follows:
A. Find the total inventory costs if using inventory policy.
This is a case considering safety stock (make sure to use the right formula)
Chapter 4 Solutions
EBK PRODUCTION AND OPERATIONS ANALYSIS
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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