EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 8220102480681
Author: Olsen
Publisher: WAVELAND
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 8.1, Problem 5P
(a)
Summary Introduction
Interpretation: The order of placing the vendors A and B for next six weeks is to be determined.
Concept Introduction:
The planned order release can be called as method which is based on the specified lead time till the planned receipt date is not received.
(b)
Summary Introduction
Interpretation: The modification in order schedule is to be calculated.
Concept Introduction:
The planned order release can be called as method which is based on the specified lead time till the planned receipt date is not received.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
For 8.4, suppose that Noname has 23,000 DRAM chips in inventory. It anticipates receiving a lot of 3,000 chips in week 3 from another firm that has gone out of business.At the current time, Noname purchases the chips from two vendors, A and B. A sells the chips for less, but will not fill an order exceeding 10,000 chips per week.a. If Noname has established a policy of inventorying as few chips as possible, what order should it be placing with vendors A and B over the next six weeks?b. Noname has found that not all the DRAM chips purchased function properly. From past experience it estimates an 8 percent failure rate for the chips purchased from vendor A and a 4 percent failure rate for the chips purchased from vendor B. What modification in the order schedule would you recommend to compensate for this problem?
A store uses an EOQ system for one of its most popular product. The product has a daily demand
of 49 units.
The store purchases the product from a supplier. The supplier has an order lead time of 6 days. The
store
uses an order quantity of 1617 units.
A shipment of the supplier always at the beginning of day and the store always place a new order
at the end of
day. The store also monitors its inventory continuously.
Assume that a shipment arrives at the beginning of day 1 and the beginning inventory becomes
1617 units.
What is the inventory level at the end of day 12?
The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days.
If the order size was 1,000 kilograms of resin, what would be the average inventory level?
Chapter 8 Solutions
EBK PRODUCTION AND OPERATIONS ANALYSIS
Ch. 8.1 - Prob. 1PCh. 8.1 - Prob. 2PCh. 8.1 - Prob. 3PCh. 8.1 - Prob. 4PCh. 8.1 - Prob. 5PCh. 8.1 - Prob. 6PCh. 8.1 - Prob. 7PCh. 8.1 - Prob. 8PCh. 8.1 - Prob. 9PCh. 8.2 - Prob. 10P
Ch. 8.2 - Prob. 11PCh. 8.2 - Prob. 12PCh. 8.2 - Prob. 13PCh. 8.2 - Prob. 14PCh. 8.2 - Prob. 15PCh. 8.2 - Prob. 16PCh. 8.2 - Prob. 17PCh. 8.2 - Prob. 18PCh. 8.2 - Prob. 19PCh. 8.2 - Prob. 20PCh. 8.2 - Prob. 21PCh. 8.2 - Prob. 22PCh. 8.3 - Prob. 23PCh. 8.3 - Prob. 24PCh. 8.3 - Prob. 25PCh. 8.4 - Prob. 26PCh. 8.4 - Prob. 27PCh. 8.4 - Prob. 28PCh. 8.4 - Prob. 29PCh. 8.5 - Prob. 30PCh. 8.5 - Prob. 31PCh. 8.5 - Prob. 32PCh. 8.5 - Prob. 33PCh. 8.5 - Prob. 34PCh. 8.6 - Prob. 35PCh. 8.6 - Prob. 36PCh. 8.6 - Prob. 37PCh. 8.6 - Prob. 38PCh. 8.6 - Prob. 39PCh. 8.6 - Prob. 40PCh. 8 - Prob. 41APCh. 8 - Prob. 42APCh. 8 - Prob. 43APCh. 8 - Prob. 44APCh. 8 - Prob. 45APCh. 8 - Prob. 46APCh. 8 - Prob. 48APCh. 8 - Prob. 49APCh. 8 - Prob. 50APCh. 8 - Prob. 51AP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Jack Ltd is a market leader in the manufacture of apple juice. They operate a reorder level system of inventory management, and the following information is available for green apples: Average usage 800 per dayMinimum usage 540 per dayMaximum usage 1260 per dayLead time for replenishment 16 - 20 per day Reorder quantity 19,500 apples a. Calculate the reorder level 1. Calculate the maximum level of inventory 2. Calculate the minimum (buffer) inventory levelarrow_forwardA plant makes monthly shipments of electric drills to a wholesaler in average lot sizes of 280 drills. The wholesaler’s average demand is 70 drills a week, and the lead time from the plant is 3 weeks. The wholesaler must pay for the inventory from the moment the plant makes a shipment. If the wholesaler is willing to increase its purchase quantity to 350 units, the plant will give priority to the wholesaler and guarantee a lead time of only 2 weeks. What is the effect on the wholesaler’s cycle and pipeline inventories?arrow_forwardCatlea Merchandising is engaged in selling school shoesfor both boys and girls in their teenage years. Catlea needs 32,000 pairs of shoes in a year in order to satisfy the market demand. It costs ₱ 48 to place an order while ₱ 8 is needed to hold each quantity of shoe in Catlea's inventory. Upon checking on Catlea's supplier, it takes 8 days in between placing an order and eventually receiving it. a. Determine the Economic Order Quantityb. Determine the number of order per monthc. Determine the reorder pointarrow_forward
- 33) please please help me with this Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from history that an average of 28 customers (with a standard deviation of 14) cancel their reservation or do not show for the flight. Revenue from a ticket on the flight is $122. If the flight is overbooked, the airline has a policy of getting the customer on the next available flight and giving the person a free round-trip ticket on a future flight. The cost of this free round-trip ticket averages $228. Super Discount considers the cost of flying the plane from New York to Los Angeles a sunk cost. By how many seats should Super Discount overbook the flight? Note: Use Excel's NORM.S.INV function to find the z value. Round z value to 2 decimal places. Round your answer to the nearest whole number.arrow_forwardJack Ltd is a market leader in the manufacture of apple juice. They operate a reorder level system of inventory management, and the following information is available for green apples:Average usage 800 per dayMinimum usage 540 per dayMaximum usage 1260 per dayLead time for replenishment 16-20 dayReorder quantity 19,500 applesRequired:1. Calculate the reorder level ii Calculate the maximum level of inventory iii Calculate the minimum (buffer) inventory levelarrow_forwardLindsay Electronics, a small manufacturer of electronic research equipment, has approximately 6,600 items in its inventory and has hired Joan Blasco-Paul to manage its inventory. Joan has determined that 12% of the items in inventory are A items, 33% are B items, and 55% are C items. She would like to set up a system in which all A items are counted monthly (every 20 working days), all B items are counted quarterly (every 59 working days), and all C items are counted semiannually (every 121 working days). How many items need to be counted each day? The total number of items that need to be counted each day is items (round your response to the nearest whole number).arrow_forward
- Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 6,900 items in its inventory and has hired Joan Blasco-Paul to manage its inventory. Joan has determined that 12% of the items in inventory are A items, 34% are B items, and 54% are C items. She would like to set up a system in which all A items are counted monthly (every 22 working days), all B items are counted quarterly (every 62 working days), and all C items are counted semiannually (every 123 working days). How many items need to be counted each day? The total number of items that need to be counted each day is _ items? (round response to the nearest whole number).arrow_forwardLindsay Electronics, a small manufacturer of electronic research equipment, has approximately 7,100 items in its inventory and has hired Joan Blasco-Paul to manage its inventory. Joan has determined that 9% of the items in inventory are A items, 39% are B items, and 52% are C items. She would like to set up a system in which all A items are counted monthly (every 19 working days), all B items are counted quarterly (every 60 working days), and all C items are counted semiannually (every 119 working days). How many items need to be counted each day? The total number of items that need to be counted each day is _______ items (round your response to the nearest whole number). To find the number of items counted per day for each class of items, use the following formula: Number of items counted per day=Inventoryx Percent of inventory/ Working days. Sum the number of items for each class to arrive at the total number of items that need to be counted each day.arrow_forwardA plant makes monthly shipments of electric drills to a wholesaler in average lot sizes of 280 drills. The whole-saler’s average demand is 70 drills a week, and the lead time from the plant is 3 weeks. The wholesaler mustpay for the inventory from the moment the plant makes a shipment. If the wholesaler is willing to increase itspurchase quantity to 350 units, the plant will give priority to the wholesaler and guarantee a lead time of only2 weeks. What is the effect on the wholesaler’s cycle and pipeline inventories?arrow_forward
- 6. Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant rate of 17,000 units per year. It costs Leaky Pipe $5 to process an order to replenish stock and $2.00 per unit per year to carry the item in stock. Stock is received 12 working days after an order is placed. No backordering is allowed. Assume 365 working days a year. a. Leaky Pipe's optimal order quantity is ______ units. (Enter your response rounded to the nearest whole number.) Part 3 b. The optimal number of orders per year is _____ orders. (Enter your response rounded to the nearest whole number.) Part 4 c. The optimal interval (in working days) between orders is ______ days. (Enter your response rounded to one decimal place.)arrow_forwardThe amount of denim used daily by the Southwest ApparelCompany in its manufacturing process to make jeans isnormally distributed with an average of 4000 yards ofdenim and a standard deviation of 600 yards. The lead timerequired to receive an order of denim from the textile mill is a constant 7 days. Determine the safety stock and re-order point if the company wants to limit the probability of a stockout and work stoppage to 5%.arrow_forwardSuppose 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?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY