**Expert Q&A****Question:**Which of the following best explains why location pooling, lead-time pooling, and delayed differentiation all can reduce the amount of inventory in the supply chain?**Options:**- ○ All three strategies reduce the in-stock probability. - ○ All three strategies make customers wait longer to receive their product. - ○ All three strategies reduce the total lead time from the supply source (e.g., a factory) to the end consumer. - ○ All three strategies reduce the variability demand within the supply chain.

Location Pooling: Location Polling is defined as it is a strategy which helps to…

Answered: Which of the following best explains…

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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Caring Hospital's dispensary reorders doses of a drug when the supply on hand falls to 18 units. Lead time for resupply is three days. Given the typical usage over the last 10 days, what service level is achieved with the hospital's reorder policy? (Hint. Use the following formula.) (Do not round intermediate calculations. Round your "z" value and final answer to 2 decimal places.) Use Table. ROP =dLT +2 (od) √LT Day Units 1 3 2 3 4 4 7 5 Service level Click here for the Excel Data File 5 5 % 6 6 7 4 8 3 9 4 10 5
Sam's Pet Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag. The following information is available about these bags: ≻Demand=75 bags/week ≻Order cost=$55.00/order ≻Annual holding cost=25 percent of cost ≻Desired cycle-service level=80 percent ≻Lead time=4 weeks (24 working days) ≻Standard deviation of weekly demand=15 bags ≻Current on-hand inventory is 320 bags, with no open orders or backorders. Part 2 a. Suppose that the weekly demand forecast of 75 bags is incorrect and actual demand averages only 50 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $enter your response here higher owing to the error in EOQ. (Enter your response rounded to two decimal places.) a. What is the EOQ? What would the average time between orders (in weeks)? b. What should R be? c. An inventory withdraw…
Fush uses an average of 40 boxes of paper serviettes a day. The restaurant operates 260 days per year, storage and handling costs for the serviettes are $ 30 per year per box, and it costs approximately $60 to order and receive a shipment of serviettes. a. Calculating the order size would minimise the sum of annual ordering and carrying costs? b. compute the total annual costs using your size from part a?
Given that: Sales = $300,000,000 Transportation cost = $15,000,000 Warehousing cost = $4,000,000 Inventory carrying cost rate (W) = 30% Cost of goods sold = $95,000,000 Other operating costs = $55,000,000 Average Inventory (AI) = $15,000,000 Accounts receivable = $35,000,000 What is the total operating cost? Group of answer choices 56,500,000 48,500,000 75,500,000 78,500,000 68,500,000
hello, can someone help me with this question?: if a company regularly holds 50 units of safety stock of a product and places orders in quantities of 500 units for the same product, what would be the average warehouse inventory for that product?
First Printing has contracts with legal firms in San Francisco to copy their court documents. Daily demand is almost constant at 11,200 pages of documents. The lead time for paper delivery is normally distributed with a mean of 4 days and a standard deviation of 1 day. A 96% service level is expected. Compute First's ROP. Refer to the standard normal table for z-values. The reorder point is documents (round your response to the nearest whole number).
Paul’s Toy Distributor (PTD) sells 200 game consoles every week. PTD charges a $300 fixed cost for every delivery. PTD’s annual inventory holding cost is $45 per console. Assume that there are 52 weeks a year. Assume that PTD orders 1000 game consoles at a time. What is the average amount of time the consoles stay as PTD’s inventory before being sold? Find the closest answer.
Andy'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 to assemble Uediracs for sale. Tegdiws are used at a relatively constant rate but the use of Widgets vary with demand. Andy wants to improve his inventory management system and use either a "P" system or a "Q" system. What are the advantages and disadvantages of each system in this application and what information is needed to choose between them?
In an ABC system based on revenue, C items individually make the lowest annual revenue contribution. TRUE FALSE
A manufacturer buys cardboard boxes from a supplier. The annual demand is 40,000 boxes and is uniformly distributed. The boxes cost $5 each. The estimated order cost is $10, and the carrying cost rate is 20% per year. What is the EOQ and what is the annual order and carrying cost? How many times a year are orders placed, and what is the average time, in weeks, between orders? Using the answer from (b), if you round the average time between orders to the nearest week, what should the order quantity be? Would you recommend using this order quantity and time interval? Suppose that the actual demand turns out to be 80,000 boxes instead of 40,000 boxes.If you had used the EOQ from the (a), what would be the annual order and carrying cost be?
The total inventory carrying cost = $enter your response here. (Enter your response as a whole number.)
First Printing has contracts with legal firms in San Francisco to copy their court documents. Daily demand is almost constant at 11,100 pages of documents. The lead time for paper delivery is normally distributed with a mean of 1 day and a standard deviation of 1 day. A 95% service level is expected. Compute First's ROP. Refer to the standard normal table for z-values. The reorder point is documents (round your response to the nearest whole number). Z-Table Z 0.38 0.50 0.67 0.84 1.04 1.28 1.41 1.56 1.65 1.75 1.88 2.06 2.33 Print Pr(Z) 65 69 75 80 85 90 92 94 95 96 97 98 99 Done - X

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