The production schedule at Mazda calls for 1,250 Mazdas to be produced during each of 22 production days in January and 1,050 Mazdas to be produced during each of 20 production days in February. Mazda uses a kanban system to communicate with Gesundheit, a nearby supplier of tires. Mazda purchases four tires per vehicle from the Gesundheit. The safety stock policy variable, a, is 0.08. The container (a delivery truck) size is 250 tires. The average waiting time plus material handling time is 0.50 day per container. Assembly lines are rebalanced at the beginning of each month. The average processing per container in January is 0.50 day. February processing time will average 0.10 day per container. How many containers should be authorized for January? containers. (Enter your response rounded up to the next whole number.)

The production schedule at Mazda calls for 1,250 Mazdas to be produced during each of 22 production days in January and 1,050 Mazdas to be produced during each of 20 production days in February. Mazda uses a kanban system to communicate with Gesundheit, a nearby supplier of tires. Mazda purchases four tires per vehicle from the Gesundheit. The safety stock policy variable, a, is 0.08. The container (a delivery truck) size is 250 tires. The average waiting time plus material handling time is 0.50 day per container. Assembly lines are rebalanced at the beginning of each month. The average processing per container in January is 0.50 day. February processing time will average 0.10 day per container. How many containers should be authorized for January? containers. (Enter your response rounded up to the next whole number.)

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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Question

The production schedule at Mazda calls for 1,250 Mazdas to be produced during each of 22 production days in January and 1,050 Mazdas to be produced
during each of 20 production days in February. Mazda uses a kanban system to communicate with Gesundheit, a nearby supplier of tires. Mazda purchases
four tires per vehicle from the Gesundheit. The safety stock policy variable, a, is 0.08. The container (a delivery truck) size is 250 tires. The average waiting
time plus material handling time is 0.50 day per container. Assembly lines are rebalanced at the beginning of each month. The average processing per
container in January is 0.50 day. February processing time will average 0.10 day per container.
How many containers should be authorized for January?
containers. (Enter your response rounded up to the next whole number.)

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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.
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?
Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.