Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 1, Problem 13DQ
Summary Introduction
To determine: The action taken by the company TB to improve productivity.
Introduction: The Company TB is a restaurant in the Country U. Company TB seeks competitive advantages through products of lower cost. The company relies heavily on its operations management to improve its productivity and reduce costs. The biggest success factor of the company is its menu, which is designed with dishes that are fast and easy to prepare.
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Sam's Pet Hotel operates 51 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 70 bags/week
> Order cost $58.00/order
> Annual holding cost 30 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.
a. Suppose that the weekly demand forecast of 70 bags is incorrect and actual demand averages only 45 bags per week. How much higher will total
costs be, owing to the distorted EOQ caused by this forecast error?
The costs will be $ higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)
a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is
$enter your response here. (Enter your response as a whole
number.)
b. The aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is shown below.
c. How would your analysis change if average weekly demand increased to 160 units per week? The aggregate inventory values are shown below.
a. What order quantity should be used? lures. (Enter your response rounded to the nearest whole number.)
b. What reorder point should be used? (Enter your response rounded to the nearest whole number.)
c. What is the total annual cost for this inventory system? (Enter your response rounded to two decimal places)
Chapter 1 Solutions
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Ch. 1 - Prob. 1EDCh. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Figure 1.1 outlines the operations,...Ch. 1 - Prob. 5DQCh. 1 - Prob. 6DQCh. 1 - Identify the 10 strategic operations management...Ch. 1 - Prob. 8DQCh. 1 - Prob. 9DQ
Ch. 1 - Prob. 10DQCh. 1 - Mass customization and rapid product development...Ch. 1 - What are the five reasons productivity is...Ch. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - This year, Druehl, Inc., will produce 57,600 hot...Ch. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - Browns, a local bakery, is worried about increased...Ch. 1 - Prob. 10PCh. 1 - Prob. 11PCh. 1 - Charles Lackey operates a bakery in Idaho Falls,...Ch. 1 - Prob. 13PCh. 1 - Prob. 14PCh. 1 - Prob. 15PCh. 1 - Prob. 16PCh. 1 - Prob. 17PCh. 1 - Prob. 1CSCh. 1 - Do you think the Uber model will work in the...Ch. 1 - Prob. 3CSCh. 1 - From your knowledge of production processes and...Ch. 1 - Prob. 1.2VCCh. 1 - Prob. 1.3VCCh. 1 - Prob. 2.1VCCh. 1 - Prob. 2.2VCCh. 1 - Prob. 2.3VC
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