OPERATIONS MANAGEMENT LL W/CONNECT CODE
2nd Edition
ISBN: 9781266520037
Author: CACHON
Publisher: MCG CUSTOM
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Chapter 8, Problem 8CQ
Summary Introduction
To identify: The impact on the inventory turns.
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A retailer currently places orders with its suppliers on a weekly basis. It is considering a switch to a routine in which it places orders on a daily basis. No change is expectedin the retailer’s demand. This change will have what effect on the volatility of its orders?a. It will decrease because its orders will better match its demand.b. It will stay the same because the retailer’s demand remains the same.c. It will increase because the more frequent orders will lead to more fickle decisions
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Taylor Supply is a wholesaler of office supplies and equipment. Taylor purchases cartons of staples from Barker Manufacturing. Barker offers a price of $7 per carton of staples. Taylor incurs a fixed charge of $90 per order to cover order equipment and clerical costs. Each order takes 3 days to arrive . Taylor has projected sales to be 603 boxes per day. Taylor's accounting department has determined the holding costs relevant for inventory decisions are 28% of unit cost. Assume Q=3000. What is the demand for staples during lead time?
1) Assume Q=3000. What is the demand for staples during lead time?
2) Assume Q=3000. What z value is associated with a 90% confidence level?
3) Assume Q=3000. If Taylor wants a 90% service level, and the standard deviation in daily demand is 250, what is the appropriate reorder point?
4) Assume Q=3000. If Taylor wants to improve their service level to 95%, and…
A company is increasing the percentage value-added time in the operation. Its value-addedtime and its flow rate remain unchanged. What will happen to its inventory turns? (Recallfrom Chapter 2 that inventory turns are computed as flow rate divided by inventory.)a. Inventory turns will go up.b. Inventory turns will stay constant.c. Inventory turns will go down.d. Cannot determine from the given information
Chapter 8 Solutions
OPERATIONS MANAGEMENT LL W/CONNECT CODE
Ch. 8 - Prob. 1CQCh. 8 - Prob. 2CQCh. 8 - Prob. 3CQCh. 8 - Prob. 4CQCh. 8 - Prob. 5CQCh. 8 - Prob. 6CQCh. 8 - Prob. 7CQCh. 8 - Prob. 8CQCh. 8 - What are the two pillars of the Toyota Production...Ch. 8 - Prob. 10CQ
Ch. 8 - Prob. 11CQCh. 8 - Prob. 12CQCh. 8 - Prob. 13CQCh. 8 - Prob. 14CQCh. 8 - Prob. 15CQCh. 8 - Prob. 16CQCh. 8 - Prob. 17CQCh. 8 - Prob. 18CQCh. 8 - Prob. 19CQCh. 8 - A company makes two models, A and B. Which of the...Ch. 8 - Prob. 21CQCh. 8 - Prob. 22CQCh. 8 - Prob. 23CQCh. 8 - Prob. 24CQCh. 8 - Prob. 25CQCh. 8 - Prob. 26CQCh. 8 - Prob. 1PACh. 8 - Prob. 2PACh. 8 - Prob. 3PACh. 8 - Prob. 4PACh. 8 - Prob. 5PACh. 8 - Prob. 6PACh. 8 - Prob. 7PACh. 8 - Prob. 8PACh. 8 - Prob. 9PACh. 8 - Prob. 10PA
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- Which of the following statements about the just-in-time (JIT) system is true? a. When using the JIT system, a firm should protect itself against uncertainty by maintaining a reserve inventory at production and stocking points. b. The JIT system is used in situations where demand and forecasting are reliable. c. The JIT system is used in situations where inventory will be stored over significant periods of time. d. The JIT system raises inventory costs. Next page Desktop mpt3D113524&cmid%3D941798&page=D7 F10 F9arrow_forwardWhich of the following is the correct equation for calculating net purchases? a. Purchases + return outwards- purchase discounts O b. Purchases - return inwards- purchase discounts O c. Purchases- return inwards + purchase discounts O d. Purchases - return outwards - purchase discountsarrow_forward“As soon as the customer places an Order, it is received by the Sales department and a Sales Order is created. The Sales Order is sent to the Finance Department to check if the customer has any outstanding balance for more than 60 days. The AR Clerk at the Finance Department checks and sends the results back to the Sales Department. If there is an outstanding balance for more than 60 days, the Sales Department puts the Order on hold and notifies the customer. Otherwise, the Order Entry Clerk creates an Order Confirmation and sends it to the customer. Simultaneously a Picking List is generated and sent to the Order Fulfilment Department who picks up the next set of process steps. The Order Fulfilment Department receives the Picking List and determines which Warehouse is closest to the Customer location. The Picking List is sent to that Warehouse location. There, the items from the Picking List are picked. An Invoice is generated and printed. The items are packed along with the printed…arrow_forward
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- From the following; refers the term "Inventory" O a. Materials in stock O b. Forecast value of a product O C. Actual demand of a product o d. Difference between actual value and demand voaluearrow_forwardPlease solve it down Thanks in advancearrow_forwardCompany XYZ is strictly a service company and does not carry any inventory on its balance sheet. Based on this, which of the ratios below will be of no interest to a financial analyst? Quick Ratio Current Ratio Debt to Equity Ratio Cash Coverage Ratioarrow_forward
- The manager of inventory would most likely be found in the __________. a. manufacturing function. b. finance function. c. marketing function. d. information system function.arrow_forwardDino is a product of the Digby company. Digby's sales forecast for Dino is 2074 units. Digby wants to have an extra 10% of units on hand above and beyond their forecast in case sales are better than expected. (They would risk the possibility of excess inventory carrying charges rather than risk lost profits on a stock out.) Taking current inventory into account, what will Dino's Production After Adjustment have to be in order to have a 10% reserve of units available for sale?Select: 1 A.2074 unitsB.2281 unitsC.2267 unitsD.2060 unitsarrow_forwardWhich of the following are the basic requirements of any business? O a. Needs b. Pricing O C. Planning O d. Exchangearrow_forward
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