What is the relationship between inventory and the nine competitive priorities we discussed in Chapter 1,“Using Operations to Create Value”? Suppose that two competing manufacturers, Company H and Company L, are similar except that Company H has much higher investments in raw materials, work-in-process, and finished goods inventory luau Company L. In which of the nine competitive priorities will Company H have an advantage?

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 9, Problem 1DQ

What is the relationship between inventory and the nine competitive priorities we discussed in Chapter 1,“Using Operations to Create Value”? Suppose that two competing manufacturers, Company H and Company L, are similar except that Company H has much higher investments in raw materials, work-in-process, and finished goods inventory luau Company L. In which of the nine competitive priorities will Company H have an advantage?

Expert Solution & Answer

Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

What is the relationship between inventory and the nine competitive priorities we discussed in Chapter 1, ”Using Operations to Create Value”? Suppose that two competing manufacturers, Company H and Company L, are similar except that Company H has much higher investments in raw materials, work-in-process, and finished goods inventory than Company L. In which of the nine competitive priorities will Company H have an advantage?

A food processor uses approximately 27,000 glass jars a month for its fruit juice products. Because of storage limitations, a lot size of 4000 jars has been used. Monthly holding cost is $0.18 per jar, and reordering cost is $60 per order. Please answer the following questions by attaching your answers in a Word or Excel document. Show all work. Round up your answers where relevant. 1. What penalty is the company incurring by its present order size. Hint: compare the cost incurred as a result of using the current order size of 4000 jars versus the cost that would be incurred as a result of using the EOQ lot size. 2. What is the number of orders per month that would be placed if the company uses the EOQ order? 3. What is the maximum number of jars that are held in inventory in a given ordering cycle using the EOQ? 4. Assume that the firm operates 30 days per month and the lead time (LT) for each order is 5 days. What is the reorder point (ROP)? Verbally interpret the meaning of this…

Define the term "inventory turn" and discuss why it is an important indicator of an organization’s profitability. Give an example of an item that would have a fast turn and a slow turn.

Answer 2

Textbook Question

Chapter 9, Problem 1DQ

What is the relationship between inventory and the nine competitive priorities we discussed in Chapter 1,“Using Operations to Create Value”? Suppose that two competing manufacturers, Company H and Company L, are similar except that Company H has much higher investments in raw materials, work-in-process, and finished goods inventory luau Company L. In which of the nine competitive priorities will Company H have an advantage?

Expert Solution & Answer

Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 9, Problem 1DQ

What is the relationship between inventory and the nine competitive priorities we discussed in Chapter 1,“Using Operations to Create Value”? Suppose that two competing manufacturers, Company H and Company L, are similar except that Company H has much higher investments in raw materials, work-in-process, and finished goods inventory luau Company L. In which of the nine competitive priorities will Company H have an advantage?

Expert Solution & Answer

Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 9, Problem 1DQ

What is the relationship between inventory and the nine competitive priorities we discussed in Chapter 1,“Using Operations to Create Value”? Suppose that two competing manufacturers, Company H and Company L, are similar except that Company H has much higher investments in raw materials, work-in-process, and finished goods inventory luau Company L. In which of the nine competitive priorities will Company H have an advantage?

Expert Solution & Answer

Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

Answer 8

Expert Solution & Answer

Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer 12

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Answer 13

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

Answer 14

Ch. 9 - What is the relationship between inventory and the...Ch. 9 - Suppose that a large discount retailer with a lot...Ch. 9 - Will organizations ever get to the point where...Ch. 9 - A part is produced in lots of 1,000 units. It is...Ch. 9 - Prince Electronics, a manufacturer of consumer...Ch. 9 - Terminator, Inc. manufactures a motorcycle part in...Ch. 9 - Ruby-Star Incorporated is considering two...Ch. 9 - Haley Photocopying purchases paper from an...Ch. 9 - Prob. 6P Ch. 9 - Southern Markets, Inc. is considering the use of...

Concept explainers

Videos

Answer to Problem 1DQ

Explanation of Solution

Want to see more full solutions like this?

Chapter 9 Solutions

Additional Business Textbook Solutions