Problem 11-40 (Static)In the past, Taylor Industries has used a fixed-time period Inventory system that Involved taking a complete Inventory count of all itemseach month. However, Increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of laborInvolved in Inventory stockrooms, yet without Increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor'sItems.ITEMANNUALITEMANNUALNUMBERUSAGENUMBERUSAGE$ 1,500$13,0006ee11112,0002,20050, e0e9,600121342,8009,9001,20010, 2004, e0061,eee3,5ee4141575e1672, еее11,e001718see191015,e00202,900a. What would you recommend Taylor do to cut back Its labor cost? (Illustrate using an ABC plan.)Item NumberClass12346789.1011121314151617181920< Prev3 of 3

ABC classification is recommended for designating the control time. It is the class where the range…

Answered: Problem 11-40 (Static) In the past,…

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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explain the characteristics of inventory situations: 1. lead time 2. sources and level of risk 3. Static versus dynamic problems
Jim's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every three weeks. Data for both products are as follows: a. What is the inventory control system for Tegdiws? Reorder quantity = 1,225 Reorder point = 824.24 b. Find the total inventory costs if using inventory policy. This is a case considering safety stock (Do not use Excel, show your work) Holding cost per unit per year is given as a percentage of item cost ITEM TEGDIW WIDGET Annual Demand 10,000 5,000 Holding cost (% of item cost) 20% 20% Set up or order cost $150.00 $25.00 Lead Time 4 weeks 1 week Safety stock 55 units 5 units Item cost $10.00 $2.00
Discuss what is meant by ABC analysis of inventory.Name several measures that can determine ABCstatus
What are the Types of Inventory Control Systems ? Perpetual Inventory System When you use a perpetual inventory system, it continually updates inventory records and accounts for additions and subtractions when inventory items are received, sold from stock, moved from one location to another, picked from inventory, and scrapped. • Periodic Inventory System Periodic inventory systems do not track inventory on a daily basis Barcode Inventory Systems Inventory management systems using barcode technology are more accurate and efficient than those using manual processes. Radio Frequency Identification (RFID) Inventory Systems Radio frequency identification (RFID) inventory systems use active and passive technology to manage inventory movements.
Examine the historical evolution of inventory management strategies, with a focus on the significant contributions of R. H. Wilson.
9. XYZ has developed the following data from its Material A Safety stock Average (normally) daily use Maximum daily use Minimum daily use ЕOQ Cost of placing an order Working days per year 280 200 240 180 1,000 P20 250 days Lead time 6 days What is the cost of carrying an inventory per unit per year? 10. XYZ has developed the following data from its Material A Safety stock Average (normally) daily use Maximum daily use Minimum daily use EOQ Cost of placing an order Working days per year 280 200 240 180 1,000 P20 250 days Lead time 6 days What is the average inventory?
Investigate the effects of demand variability on the overall effectiveness of the Wilson approach in inventory management.
Increasing the variability of either demand or lead time ________ reorder points. Group of answer choices Decreases Have no effect on Increases
Weekly Average Demand 698 Standard deviation of (weekly) demand 35 Setup cost ($) 1750 Procurement cost ($) 290 Holding cost /unit/week ($) 1 In the provided table, you will find details about the demand and inventory levels of the "Galaxy Explorer" drone, a best-selling product at a department store. The store is open for 42 weeks in a year. The store manager placed an order in the beginning of week 13, and he expects to receive the orders in the beginning of week 15. On average, how many units of "Galaxy Explorer" drone should the store manager expect to sell while waiting for the order to arrive? (Do not round your intermediate calculations. Round your final answers to the nearest whole number. Only enter a number. Do not enter any units
The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items: Relevant ordering costs per purchase $550 order Relevant carrying costs per year for each package: Required annual return on investment Required other costs per year 17% $7 Annual demand is 30,000 packages per year. The purchase price per package is $53. Which of the following statements is true of Allianz's EOQ system costs? O At EOQ, the annual relevant ordering costs is exactly the half of annual relevant carrying costs. O At EOQ, the annual relevant carrying costs is exactly the half of the annual relevant total costs. O At EOQ, the annual relevant carrying costs is higher than the annual relevant ordering costs. O At EOQ, the annual relevant carrying costs is equal to the annual relevant total costs.
Problem 7 Lynne Chappell manages the inventory of supplies in a large hospital. To determine which items should be closely monitored, Lynne decided to use the ABC classification schemeto group the items on the basis of their value. Asthe following table shows, she took a random sample of20 items and recorded the annual usage and unit cost ofeach. How should each item be classified?Inventory Item Unit cost(in U.S.dollars) AnnualUsageP21 $80 800A12 $400 70K43 $50 100S54 $60 90C25 $50 130D76 $30 170E27 $20 200F38 $300 90H19 $520 120Q10 $10 100R82 $20 80G65 $80 70L71 $220 200M94 $70 80V45 $15 60T62 $30 180I17 $20 80W22 $300 90O37 $700 85N88 $5 100
Company B sold 50% of the 5,000 items that it carried last week. There were 500 items for which some demand was not satisfied. What is the stockout probability for last week? A) 10% B) 50% C) 85% D) 28%

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