EBK PRODUCTION AND OPERATIONS ANALYSIS
EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 8220102480681
Author: Olsen
Publisher: WAVELAND
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Chapter 10.2, Problem 1P

A.

Summary Introduction

Interpretation: The task that is represented by Node 6 in the network diagram is to be identified

Concept Introduction: Network diagram is a graphical representation of tasks and events happening in a project. It depicts the workflow and is used to compute the total duration of the project.

B.

Summary Introduction

Interpretation: The activities that have to be completed by week 16, so as to ensure the completion of the project without any delay are to be identified.

Concept Introduction: Network diagram is a graphical representation of tasks and events happening in a project. It depicts the workflow and is used to compute the total duration of the project.

C.

Summary Introduction

Interpretation: The consequence of the activity H not being started till week 11 and the subcontractor delivering the module in 7 weeks is to be discussed.

Concept Introduction: Network diagram is a graphical representation of tasks and events happening in a project. It depicts the workflow and is used to compute the total duration of the project.

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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 $11.00 per bag. The following information is available about these bags: > Demand 95 bags/week > Order cost $52.00/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. a. Suppose that the weekly demand forecast of 95 bags is incorrect and actual demand averages only 75 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.)
Sam's Pet Hotel operates 50 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about these bags: > Demand = 95 bags/week > Order cost = $55.00/order > Annual holding cost = 35 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 95 bags is incorrect and actual demand averages only 75 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $ 10.64 higher owing to the error in EOQ. (Enter your response rounded to two decimal places.) b. Suppose that actual demand is 75 bags but that ordering costs are cut to only $13.00 by using the internet to automate order placing. However, the buyer does…
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