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:6-38 North Manufacturing has a demand for 1,000 pumps each year. CHAPTER 6 INVENTORY CON 230 a Manufacturing $40 to place an order, and the carry- ing cost is 25% of the unit cost. If pumps are ordered in quantities of 200, North Manufacturing can get a 3% discount on the cost of the pumps. Should North Manufacturing order 200 pumps at a time and take the 3% discount? The cost of a pump is $50. It costs North 6-39 Linda Lechner is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60. Furthermore, the standard deviation for BX-5 was 7. Linda would like to maintain a 90% service level. What safety stock level do you recommend for ВХ-5? brt QUA 31-199 X200 :6-40 Linda Lechner has just been severely chastised for her inventory policy. (See Problem 6-39.) Sue Sur- rowski, her boss, believes that the service level should be either 95% or 98%. Compute the safety stock levels for a 95% and a 98% service level. 500 6-43 Linda knows that the carrying cost of BX-5 is 50 cents per unit per year. Compute the carrying cost that is associated with a 90%, a 95%, and a 98% ser- vice level. 6-41 Ralph Janaro simply does not have time to ana- lyze all of the items in his company's inventory. As a young manager, he has more important things to do. The following is a table of six items in inventory along with the unit cost and the demand in units. (a) Find the total amount spent on each item during the year. What is the total investment for all of 3d these? (b) Find the percentage of the total investment in in- ventory that is spent on each item. 93

:6-38 North Manufacturing has a demand for 1,000 pumps each year. CHAPTER 6 INVENTORY CON 230 a Manufacturing $40 to place an order, and the carry- ing cost is 25% of the unit cost. If pumps are ordered in quantities of 200, North Manufacturing can get a 3% discount on the cost of the pumps. Should North Manufacturing order 200 pumps at a time and take the 3% discount? The cost of a pump is $50. It costs North 6-39 Linda Lechner is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60. Furthermore, the standard deviation for BX-5 was 7. Linda would like to maintain a 90% service level. What safety stock level do you recommend for ВХ-5? brt QUA 31-199 X200 :6-40 Linda Lechner has just been severely chastised for her inventory policy. (See Problem 6-39.) Sue Sur- rowski, her boss, believes that the service level should be either 95% or 98%. Compute the safety stock levels for a 95% and a 98% service level. 500 6-43 Linda knows that the carrying cost of BX-5 is 50 cents per unit per year. Compute the carrying cost that is associated with a 90%, a 95%, and a 98% ser- vice level. 6-41 Ralph Janaro simply does not have time to ana- lyze all of the items in his company's inventory. As a young manager, he has more important things to do. The following is a table of six items in inventory along with the unit cost and the demand in units. (a) Find the total amount spent on each item during the year. What is the total investment for all of 3d these? (b) Find the percentage of the total investment in in- ventory that is spent on each item. 93

Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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:6-38 North Manufacturing has a demand for 1,000 pumps each year. CHAPTER 6 INVENTORY CON 230 a Manufacturing $40 to place an order, and the carry- ing cost is 25% of the unit cost. If pumps are ordered in quantities of 200, North Manufacturing can get a 3% discount on the cost of the pumps. Should North Manufacturing order 200 pumps at a time and take the 3% discount? The cost of a pump is $50. It costs North 6-39 Linda Lechner is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60. Furthermore, the standard deviation for BX-5 was 7. Linda would like to maintain a 90% service level. What safety stock level do you recommend for ВХ-5? brt QUA 31-199 X200 :6-40 Linda Lechner has just been severely chastised for her inventory policy. (See Problem 6-39.) Sue Sur- rowski, her boss, believes that the service level should be either 95% or 98%. Compute the safety stock levels for a 95% and a 98% service level. 500 6-43 Linda knows that the carrying cost of BX-5 is 50 cents per unit per year. Compute the carrying cost that is associated with a 90%, a 95%, and a 98% ser- vice level. 6-41 Ralph Janaro simply does not have time to ana- lyze all of the items in his company's inventory. As a young manager, he has more important things to do. The following is a table of six items in inventory along with the unit cost and the demand in units. (a) Find the total amount spent on each item during the year. What is the total investment for all of 3d these? (b) Find the percentage of the total investment in in- ventory that is spent on each item. 93
Transcribed Image Text::6-38 North Manufacturing has a demand for 1,000 pumps each year. CHAPTER 6 INVENTORY CON 230 a Manufacturing $40 to place an order, and the carry- ing cost is 25% of the unit cost. If pumps are ordered in quantities of 200, North Manufacturing can get a 3% discount on the cost of the pumps. Should North Manufacturing order 200 pumps at a time and take the 3% discount? The cost of a pump is $50. It costs North 6-39 Linda Lechner is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60. Furthermore, the standard deviation for BX-5 was 7. Linda would like to maintain a 90% service level. What safety stock level do you recommend for ВХ-5? brt QUA 31-199 X200 :6-40 Linda Lechner has just been severely chastised for her inventory policy. (See Problem 6-39.) Sue Sur- rowski, her boss, believes that the service level should be either 95% or 98%. Compute the safety stock levels for a 95% and a 98% service level. 500 6-43 Linda knows that the carrying cost of BX-5 is 50 cents per unit per year. Compute the carrying cost that is associated with a 90%, a 95%, and a 98% ser- vice level. 6-41 Ralph Janaro simply does not have time to ana- lyze all of the items in his company's inventory. As a young manager, he has more important things to do. The following is a table of six items in inventory along with the unit cost and the demand in units. (a) Find the total amount spent on each item during the year. What is the total investment for all of 3d these? (b) Find the percentage of the total investment in in- ventory that is spent on each item. 93
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