PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
11th Edition
ISBN: 9780135226742
Author: HEIZER
Publisher: PEARSON
Question
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Chapter 11, Problem 14DQ
Summary Introduction

To determine: The support provided by purchasing to implement Just-In-Time delivery services.

Introduction: Just-In-Time delivery service is an inventory technique which aims to minimize inventory by acquiring raw materials at the time of production. Just-in-time approach eliminates stocking of goods and it makes production department to forecast demand precisely.

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Op2. Define the parties involved directly and indirectly in the supply chain and their role in the smooth running of the business?
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K Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $30,800 (as shown in the statement below) inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Kamal would like to improve profit line to $40,800 so he can obtain the bank's approval for the loan. % of sales Sales 280,000 100% Cost of supply chain purchases 182,000 65% Other production costs 39,200 14% 10% Fixed costs Profit 28,000 30,800 11% a) What percentage improvement is needed in a supply chain strategy for profit to improve to $40,800? What is the cost of material

Chapter 11 Solutions

PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB

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