Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 11.9, Problem 28P
Summary Introduction
Interpretation: Coordinates of the optimal location for the new machines are to be determined in order to minimize the weighted sum of the rectilinear distances from the new machine to the existing machines.
Concept Introduction:
Rectilinear distance refers to the addition of distance between two facilities. It is generally used to determine the total distance between two points with the help of the rectilinear array or the street network.
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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 11 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 11.3 - Prob. 1PCh. 11.3 - Prob. 2PCh. 11.3 - Prob. 3PCh. 11.3 - Prob. 4PCh. 11.3 - Prob. 5PCh. 11.3 - Prob. 6PCh. 11.4 - Prob. 7PCh. 11.4 - Prob. 8PCh. 11.5 - Prob. 10PCh. 11.6 - Prob. 11P
Ch. 11.6 - Prob. 12PCh. 11.6 - Prob. 13PCh. 11.6 - Prob. 14PCh. 11.6 - Prob. 15PCh. 11.6 - Prob. 16PCh. 11.6 - Prob. 17PCh. 11.6 - Prob. 18PCh. 11.6 - Prob. 19PCh. 11.7 - Prob. 20PCh. 11.7 - Prob. 21PCh. 11.7 - Prob. 22PCh. 11.7 - Prob. 23PCh. 11.8 - Prob. 24PCh. 11.8 - Prob. 25PCh. 11.8 - Prob. 26PCh. 11.8 - Prob. 27PCh. 11.9 - Prob. 28PCh. 11.9 - Prob. 29PCh. 11.9 - Prob. 30PCh. 11.9 - Prob. 31PCh. 11.9 - Prob. 32PCh. 11.9 - Prob. 33PCh. 11.9 - Prob. 34PCh. 11.9 - Prob. 35PCh. 11.9 - Prob. 36PCh. 11.9 - Prob. 37PCh. 11.9 - Prob. 38PCh. 11.10 - Prob. 39PCh. 11.10 - Prob. 40PCh. 11.10 - Prob. 41PCh. 11.11 - Prob. 42PCh. 11.11 - Prob. 43PCh. 11.11 - Prob. 45PCh. 11 - Prob. 46APCh. 11 - Prob. 47APCh. 11 - Prob. 48APCh. 11 - Prob. 49APCh. 11 - Prob. 50APCh. 11 - Prob. 51APCh. 11 - Prob. 52APCh. 11 - Prob. 53APCh. 11 - Prob. 54APCh. 11 - Prob. 55APCh. 11 - Prob. 56APCh. 11 - Prob. 58AP
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