True or False: Lower speed supply chain operations are always preferable because they operate at a lower cost. & Explain why its false or true 2. Describe a basic tradeoff that is involved with holding inventory.

True or False: Lower speed supply chain operations are always preferable because they operate at a lower cost. & Explain why its false or true 2. Describe a basic tradeoff that is involved with holding inventory.

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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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
Solve the below EOQ example. Phone company had the following demand profile and related holding and set up costs: $0.75 in holding costs per unit = H Demand rate of 10,000 per year = D Set up cost of $500 = S What is the EOQ? How many orders they need to make in a year (365 days)? What is the cycle time between the orders?
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Reactions and additional comments: Per the textbook definition, the term bullwhip effect “Describes the distortions in a supply chain caused by changes in customer demand, resulting in large swings in inventory levels as the orders ripple upstream from the retailer to the distributor and manufacturer” (Wallace, 2020, p. 137). The term is derived from physics. When cracking a whip, someone just has to snap their wrist and it causes a wave like effect that increases with a chain reaction. The bullwhip effect is a term that was first used in the 1990s. The makers of Pampers had many changes in order volumes, when usually diapers were bought at a constant rate (The Bullwhip effect : History and solutions, 2021). This caused the company to receive hard hits in demand with each new order from the retailers. For example, during the Covid-19 pandemic, everyone was told to stay home, go to school from home, and work from home. This caused the need for many more computers and electronic…
1. Which of the following costs do not come under inventory carrying cost calculation? a) Investment in a software for updating stock position online b) Investment in stores space c) Salaries of procurement personnel d) Cost of maintaining the inventory stocks 2. Which of the following will have lesser bullwhip effect in a supply chain? a) Supply Chain co-ordination b) Opening more stocking points closer to the point of consumption c) Empowering the lower echelons of the inventory to take decisions on fulfilling the demand d) All of the above 3. What is the effect of delayed differentiation strategy? a) The number of variants offered will be reduced b) The inventory carrying costs will come down c) Production Planning and Control will become more difficult d) Bullwhip effect will be more pronounced
Which one of the following is not the result of Bullwhip effect? Select one: a. Inefficient Inventory Investment b. Efficient transport use c. Loss of Revenue d. Poor customer service
Hey, I need help with this Operations Management problem. Thx!
Earthbound Corporation is a manufacturer and distributor of air conditioning systems. You have been engaged to install an accounting system for Earthbound period among the inventory control features earthbound desires as part of the system are indicators of how much to order and when period. The following information is furnished for a product called “Hydronix” which is carried in inventory: Hydronix are sold by the gross (12 dozen) at a list price of P800 per gross FOB shipper. John receives a 40% trade discount off list price on purchases in gross lots. Freight cost is P20 gross from the shipping point to John's plant John uses about 5,000 Hydronix during 259-day production year and must purchase a total of 36 gross per year to allow for normal breakage. Minimum and maximum usages are 12 and 28, respectively. It takes 20 working days (normal delivery time) to receive an order from the date the purchase request is initiated. A rush order in full gross lots can be received by air…
The Mcdonald’s fast-food restaurant on campus sells an average of 7,200 quarter pound hamburgers a week. Hamburger patties are resupplied twice a week, and on average the store has 740 pounds of hamburger in stock. Assume that hamburger patties cost $3 a pound and there are 52 weeks in a year. What is the inventory turnover for the hamburger patties? (Round 2 decimal places) On average how many days of supply are on hand? (Round 2 Decimal places)
Sam's Pet Hotel operates 5050 weeks per year, 66 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.0013.00 per bag. The following information is available about these bags: follows≻Demandequals=8080 bags/week follows≻Order costequals=$55.0055.00/order follows≻Annual holding costequals=2020 percent of cost follows≻Desired cycle-service levelequals=8080 percent follows≻Lead timeequals=55 weeks (3030 working days) follows≻Standard deviation of weekly demandequals=1515 bags follows≻Current on-hand inventory is 320320 bags, with no open orders or backorders. Part 2 a. Suppose that the weekly demand forecast of 8080 bags is incorrect and actual demand averages only 5555 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error?
Based on available information, lead time demand for PC thumb drives averages 49 units (normally distributed), with a standard deviation of 4 drives. Management wants a 95% service level. Refer to the standard normal table for z-values. a) What value of Z should be applied? b) How many drives should be carried as safety stock? units (round your response to the nearest whole number). c) What is the appropriate reorder point? units (round your response to the nearest whole number).
Operation mangement a) Given the current policy of ordering 80 units at a time, the total of the annual ordering cost and the annual holding cost is $_____(round your response to the nearest whole number). b and c in image