Coca Cola in Turkey manages its products' inventory at Shell gas stations, that is Coca Cola, decides replenishment time and the order quantities for all its products. Shell sends real-time sales data of Coca Cola products at itsgas station stores and as part of this agreement Coca Cola gives a certain percentage discount in the prices it charges to Shell. Based on what we learned in class, choose the correct statement(s):O a.Because Shell owns the stores it is more likely to make better forecasts of the demand for Coca Cola productsOb.This agreement is a strategy to reduce the bullwhip effectOc.The main purpose of VMI is to reduce lead time in supply chainsO d.This is known as vendor-managed inventory (VMI)

The bullwhip effect is described as the distortion in demand that occurs due to an incorrect…

Answered: Coca Cola in Turkey manages its…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Miko runs a cosmetics store in Melbourne. A good part of Miko’s revenue comes from the popular MM foundation line. It has an extremely loyal customer base who often buy other products when they come into the shop to purchase their foundation. Earlier this year, a ‘Beep Q’ opened up in down the road selling cosmetics at low prices. Beep Q is a large national chain with a 30% share of the Australian cosmetics market. They have a history of opening shops near to existing small shops and driving them out of business through heavy discounting. Beep Q stock all of the MM foundation line and, for the last 3 months, have been selling these products for 35% below RRP and 10% below the price that Miko pays for them wholesale (including delivery). Since they opened, Miko has seen her sales of these products plummet and it is starting to make her worried about the survival of her business. Miko has also contacted Puppy, who distributes the MM products, to discuss her concerns about Beep Qs’…
Discuss the various forms of inventory costs and use examples from the article to illustrate your point.
plase answer within 30 minutes..
Your options for shipping $96,970 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 32 days at a cost of $3,370, or (2) truck the parts to Los Angeles and then ship at a total cost of $5,180. The second option will take only 20 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30% of the value per year. If you have a third option and it costs only $4,440 and also takes 20 days, what is your most economical plan? The daily holding cost of Alternative 1 is $ 79.70 . (Enter your response rounded to two decimal places.) The daily cost of faster shipping with Alternative 2 is $ 150.83. (Enter your response rounded to two decimal places.) The daily cost of faster shipping with Alternative 3 is $ (Enter your response rounded to two decimal places.)
From management’s point of view, what is the primary value of an exchange curve?Discuss both the exchange curve for replenishment frequency and inventory valueand the exchange curve for expected number of stock-outs per year and the investment in safety stock.
A local supermarket sells a popular brand of shampoo at a fairly steady rate of 380 bottles per month. The cost of each bottle to the supermarket is 45 cents, and the cost ofplacing an order has been estimated at $8.50. Assume that holding costs are based ona 25 percent annual interest rate. Stock-outs of the shampoo are not allowed.b. If the procurement lead time is two months, find the reorder point based on the onhand inventory
Your options for shipping $104,800 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 30 days at a cost of $3,370, or (2) truck the parts to Los Angeles and then ship at a total cost of $5,030. The second option will take only 18 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30% of the value per year. If you have a third option and it costs only $4,080 and also takes 18 days, what is your most economical plan? Part 2 The daily holding cost of Alternative 1 is $________. (Enter your response rounded to two decimal places.) Part 3 The daily cost of faster shipping with Alternative 2 is $________. (Enter your response rounded to two decimal places.) Part 4 The daily cost of faster shipping with Alternative 3 is $________. (Enter your response rounded to two decimal places.) Part 5 ▼ Alternative 1? Alternative 2? Alternative 3? is more economical.
You are a logistics manager of Medical Device Depot, Inc., located in Ellicott City, MD. Your job is to develop logistics solutions for your international customers. Now you receive an order about one unit of SR-130 Portable X-Ray System Based on the information of company webpage, this equipment has the value of $16,000 and its storage dimension is 26"W x 53" Lx 28"H. This customer is located in Shanghai, China. You may need to google or contact service providers to get quotes. You need to propose two transportation options including transit time and total costs. The two options are: 1) Air shipping: from Ellicott City, MD (BWI airport) to Shanghai, China (SHA airport); 2) Ocean shipping: from Ellicott City, MD (Port of Baltimore) to Shanghai, China (Port of Shanghai).
2. A company that manufactures household appliances outsources one of the component parts used in its products. The demand for this substance used by the company is constant and equals to 480 units per year. The supplier of the company has offered a price offer according to the table below, with all units at a discount. The firm assumes that the inventory holding cost percentage will be 20% and the ordering cost will be 150$. Find out how many component parts the firm should buy. (30p) Order Quantity 0 ≤Q <500 500 ≤Q< 1000 1000
A specialty coffeehouse sells Colombian coffee at a fairly steady rate of 280 pounds annually. The beans are purchased from a local supplier for $2.40 per pound. The coffeehouse estimates that it costs $45 in paperwork and labor to place an order for the coffee, and holding costs are based on a 20 percent annual interest rate. For the situation described above, draw a graph of the amount of inventory on order. Using your graph, determine the average amount of inventory on order. Also compute the demand during the replenishment lead time. How do these two quantities differ?
You are in the process of deciding the optimal order quantity of shampoo packs for a hotel. The supplier charges you $47 per order and your stockroom costs approximately $0.69 per shampoo pack per year to store the product. Based on prior research, you were able to determine that the hotel goes through approximately 94 shampoo packs per day. They hold 0 safety stock. The supplier is willing to give the following quantity discounts for the product. Using the order quantity that will minimize total cost, what is the total annual cost? Quantity 1 - 1499 $2.25 $2.10 $2.05 $2.03 Note: Round your answer to 2 decimal places. Do NOT include $ sign or a comma. For example, answer like 50246 and NOT $50,246 Answer: 1500 - 3999 4000 - 7999 8000+ Price Check
A distributor of computer monitors purchases the monitors from an overseas supplier under a continuous review system. The average demand for a popular computer monitor is normally distributed with a mean of 50 units a day and a standard deviation of 10 units a day. It costs $75 to process each order and there is a 16 day lead time. The holding cost for each monitor is $20 per year and the distributor wishes to maintain a 90% service level. The distributor operates 300 days in a year. The distributor would like to use a periodic review inventory system to manage their inventory. Use the information in Scenario 9.15. What is the target inventory level needed to achieve a 90% service level? greater than 1250 units but less than or equal to 1500 units less than or equal to 1000 units greater than 1000 units but less than or equal to 1250 units greater than 1500 units

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