8) What are the procedures for issuing materials?
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8) What are the procedures for issuing materials?
9) How are the levels of replenishment determined?
10) Why should there be a minimum and maximum level of stock maintained at the warehouse
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- The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.N7 The major types of inventory include raw materials, finished goods and: A. cleaning supplies B. work-in-process C. returned material D. defective goods E. pipeline inventoryDavid Alexander has compiled the following table of six itemsin inventory at Angelo Products, along with the unit cost andthe annual demand in units:IDENTIFICATION CODE UNIT COST ($) ANNUAL DEMAND(UNITS)XX1 5.84 1,200B66 5.40 1,1103CPO 1.12 89633CP 74.54 1,104R2D2 2.00 1,110RMS 2.08 961 Use ABC analysis to determine which item(s) should be care-fully controlled using a quantitative inventory technique and which item(s) should not be closely controlled.
- Why should there be a minimum and maximum level of raw material maintained at the warehouseUnder which conditions would a plant manager elect to use a fixed-order quantity inventory model as opposed to a fixed-time period inventory model?List and explain the disadvantages of locating a storage area at some distance from the receiving and preparation areas. Are there any advantages?
- Ikagami Retail receives shipments of a particular product from Booker Store and PaulEnterprises. Let x = number of units of product received from Booker Store y = number of units of products received from Paul Enterprises Requirement: a. Write an expression for the total number of units of products received by Ikagami Retail.b. Shipments from Booker Store cost P20 per unit, and shipments from Paul Ent cost P25 per unit. Develop an objective function representing the total cost of shipments to Ikagami.c. Assuming a monthly demand at Ikagami is 5,000 units, develop a constraint that requires 5,000 units to be shipped to Ikagami.d. No more than 4,000 units can be shipped from Booker, and no more than 3,000 from Paul. Develop constraints to model this situation.e. Of course, negative amounts cannot be shipped. Combine the objective function and constraints developed to state a mathematical model for satisfying the demand at Ikagami at minimum cost.Ikagami Retail receives shipments of a particular product from Booker Store and PaulEnterprises. Let x = number of units of product received from Booker Store y = number of units of products received from Paul Enterprises Requirement: a. Write an expression for the total number of units of products received by Ikagami Retail.b. Shipments from Booker Store cost P20 per unit, and shipments from Paul Ent cost P25 per unit. Develop an objective function representing the total cost of shipments to Ikagami.c. Assuming a monthly demand at Ikagami is 5,000 units, develop a constraint that requires5,000 units to be shipped to Ikagami.TT Beverage Co. is a distributor of beer, wine and soft drinks product. From amain warehouse located in Magusa, TRNC, TT supplies nearly 1000 retail stores withbeverage products. The beer inventory, which constitutes about 40% of the company’stotal inventory, averages approximately 50 000 cases. With an average cost per case ofapproximately 8MU, TT estimates the value of its beer inventory to be 400 000 MU.The warehouse manager has decided to do a detailed study of inventory costsassociated with Sergio Beer, the # 1 selling TT beer. The purpose of the study is toestablish the “how-much to order,” and “when to order” decisions for Segio Beer thatwill result in the lowest possible cost.The manager found that the demand is constant and 2 000 cases/week.The cost ofholding for the TT beer inventory is 25% of the value of the inventory.(Note that definding the holding cost as a % of the value of the product isconvenient, because it is easily transferable to other products)TT is paying 32…
- a)Determine the service level b) determine optimal stocking levelWhich type of inventory system would you use in the following situations?a. Supplying your kitchen with fresh food.b. Obtaining a daily newspaper.c. Buying gas for your car.To which of these items do you impute the highest stockout cost?a) ABC Plantation uses an average of 50 bags of fertilizer a day. ABC Plantation operates 260 days per year. Storage and handling costs for the fertilizer are RM40 a year per bag. It costs RM70 to order and receive the shipment of fertilizer. i. ii. Compute the economic order quantity (EOQ) Calculate the total annual cost iii. Compute the optimal number of order per year iv. Calculate the optimal number of days between any two orders