Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter C, Problem 6P
To boost sales, Pfisher (refer to Solved Problem 2) announces a new price structure for disposable surgical packages. Although the price break 110 longer is available at 200 units, Pfisher now offers an even greater discount if larger quantities are purchased. On orders of 1 to 499 packages, the price is $50.25 per package. For orders of 500 or more, the price per unit is $47.80. Ordering costs, animal holding costs, and annual demand remain at $64 per order, 20 percent of tile per-unit cost, and 490 packages per year, respectively. What is the new lot size?
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The manager of a car wash received a revised price list from the vendor who supplies soap, anda promise of a shorter lead time for deliveries. Formerly the lead time was four days, but now thevendor promises a reduction of 25 percent in that time. Annual usage of soap is 4,500 gallons. Thecar wash is open 360 days a year. Assume that daily usage is normal, and that it has a standarddeviation of 2 gallons per day. The ordering cost is $30 and annual carrying cost is $3 a gallon.The revised price list (cost per gallon) is shown in the following table.Quantity Unit Price1−399 $2.00400−799 1.70800 + 1.62a. What order quantity is optimal?b. What ROP is appropriate if the acceptable risk of a stockout is 1.5 percent?
(a)
Complete the invoice itemization by finding the total amount (in $) for each item, the merchandize total (in $), and the total amount of the invoice (in $).
Stock #
Description
Unit Price
Amount
4811V
Stereo Receivers
50 x $293.50
$
511CX
Blu-Ray Players
25 x $136.28
$
6146M
Home Theater Systems
40 x $656.12
$
1031A
LCD TVs
20 x $594.00
$
Merchandise Total
$
Insurance + Shipping
$
Invoice Total
$
(b)
What are the discount date and the net date if the shipment arrived on July 14?
Discount Date ---July---
Net Date ---August___
(c)While in transit, five Blu-ray players and four LCD TVs were damaged and will be returned. What is the amount (in $) of the returned merchandise? What is the revised merchandise total (in $)?
Returned merchandise$
Revised merchandise total$
(d)What are the amount (in $) of the cash discount and the net amount due if the discount is taken? (Round your answers to the nearest cent.)
cash discount$
Net…
All the statements concerning reasons to hold inventory are true Except:
To meet variations in demand
To allow inflexible production schedules
To take advantage of price discounts
As a safeguard against variations in delivery time
Chapter C Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
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