A firm wants to compute its ordering and carrying cost of inventory based on the plan shown belows: Lead time(week): Setup costs(per order): Holding costs (per week): Project on hand week 0 1 $220 $4.00 96 (this is weekly) Develop an ordering plan and costs for Speaker Kits, using these techniques: EOQ question: if one order cannot cover the net requirement, you must order double or triple volume and it must be an integer - round up, or round down. E.g. 1.445=2; 1.444=1 (decimal place 3) POQ question: you must postpone your order if net requirements for next week is 0. When ordering, you must wait till when you absolutely need to order (if you have no net requirements, then no order needed). 1 see a net requirement in particular week, then that is = one period. You must show your work. First week's "projected on hand" has no holding cost. Pay attention to 0, if not properly input, you do not receive a full A: Lot-for-lot 3% Week Gross requirements Projected on hand Net requirements Planned order receipts Planned order releases B: EOQ 3% Week Gross requirements Projected on hand Net requirements Planned order receipts Planned order releases C: POQ 3% Week Gross requirements Projected on hand Net requirements Planned order receipts Planned order releases 0 1 2 3 4 5 6 7 8 9 10 11 12 13 60 23 20 85 0 45 93 43 0 27 51 39 Weekly demand Yearly demand 0 Total holding cost $0.00 Total ordering cos Total cost: $0.00 $0.00 0 1 2 3 4 5 6 7 8 9 10 11 12 13 EOQ amount: 60 23 20 85 0 45 93 43 0 27 51 39 EOQ amount: Roundup? Roundown? Total holding cost $0.00 Total ordering cos Total cost: $0.00 $0.00 0 1 2 3 4 5 6 7 8 9 10 11 12 13 60 23 20 85 0 45 93 43 0 27 51 39 #period per order POQ Total holding cost Roundup? Roundown? $0.00 Total ordering cos $0.00 Total cost: $0.00

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...

See similar textbooks

Similar questions

The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?

Recommended textbooks for you

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

MARKETING 2018

Marketing

ISBN:

9780357033753

Author:

Pride

Publisher:

CENGAGE L

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

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

MARKETING 2018

Marketing

ISBN:

9780357033753

Author:

Pride

Publisher:

CENGAGE L

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Contemporary Marketing

Marketing

ISBN:

9780357033777

Author:

Louis E. Boone, David L. Kurtz

Publisher:

Cengage Learning

Marketing

ISBN:

9780357033791

Author:

Pride, William M

Publisher:

South Western Educational Publishing

SEE MORE TEXTBOOKS