Operations Management
13th Edition
ISBN: 9780135173626
Author: HEIZER, Jay, RENDER, Barry, Munson, Chuck
Publisher: Pearson,
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Chapter 11.S, Problem 17P
Summary Introduction
To select: The economical option for delivery.
Introduction:
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Question 4
Which of the following could be the cross-price elasticity of demand for two goods that are complements?
O c. 1.3
a.-1.3
Ob. 0.2
d. 2
Question 3
Imagine a mining company, Deep Earth Extraction, operates a transportation system
to move ore from its remote mine to a processing facility. The transport vehicle has a
capacity of 220 tons of ore, and each trip costs the company R70,000 regardless of
the amount of ore transported. Additional costs amount to R60 per ton of ore for
loading, securement, and tracking expenses.
a) If Deep Earth Extraction charges R450 per ton of ore transported, how many
tons of ore does it need to transport per trip to break even?
b) Surveys have revealed that the transport vehicles are, on average, carrying
about 80% of their maximum capacity of ore. Considering this loading level and
a rate of R450 per ton, what would be the profit or loss realized on each trip?
question #2
Same problem statement:
Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier,
with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box
costs the retailer $10, and the inventory holding cost is 25% per year.
If the retailer wants to achieve a 99% service level (use the z-value with one decimal, as in Table 13.4 on page 400 of the textbook), what should be the safety stock value?
Numeric Response
772.8
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Chapter 11 Solutions
Operations Management
Ch. 11.S - Prob. 1DQCh. 11.S - Question: 2. It the probability of a super-event...Ch. 11.S - Question: 3. If the probability of a super-event...Ch. 11.S - Question: 4. Describe some ramifications of the...Ch. 11.S - Question: 5. Describe causes of the bullwhip...Ch. 11.S - Question: 6. Describe how the bullwhip measure can...Ch. 11.S - Question: 7. Describe some potentially useful...Ch. 11.S - Prob. 8DQCh. 11.S - Question: 9. Describe some disadvantages of using...Ch. 11.S - Question S11.1 How would you go about attempting...
Ch. 11.S - Question S11.2 Phillip Witt, president of Witt...Ch. 11.S - Question S11.3 Still concerned about the risk in...Ch. 11.S - Question S11.4 Johnson Chemicals is considering...Ch. 11.S - Prob. 5PCh. 11.S - Question S11.6 Consider the supply chain...Ch. 11.S - Question S11.7 Over the past 5 weeks, demand for...Ch. 11.S - Prob. 8PCh. 11.S - Prob. 9PCh. 11.S - Question S11.10 As purchasing agent for Woolsey...Ch. 11.S - Question S11.11 Using the data in Problem S11.10,...Ch. 11.S - Question S11.13 Your options for shipping 100,000...Ch. 11.S - Prob. 17PCh. 11.S - Prob. 18PCh. 11.S - Question S11.16 Recently, Abercrombie Fitch (AF)...Ch. 11.S - Prob. 12PCh. 11.S - Prob. 13PCh. 11.S - Prob. 14PCh. 11.S - Prob. 20PCh. 11.S - Prob. 21PCh. 11.S - Prob. 22PCh. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - Prob. 3DQCh. 11 - Prob. 4DQCh. 11 - Question 5. What is vertical integration? Give...Ch. 11 - Question 6 What are three basic approaches to...Ch. 11 - Prob. 7DQCh. 11 - Question 8. What is the difference between...Ch. 11 - Question 9. What is CPFR?Ch. 11 - Question 10. What is the value of online auctions...Ch. 11 - Question: 11. Explain how FedEx uses the Internet...Ch. 11 - Question 12. How does Walmart use drop shipping?Ch. 11 - Prob. 13DQCh. 11 - Question: 14. What can purchasing do to implement...Ch. 11 - Question 15. What is e-procurement?Ch. 11 - Prob. 16DQCh. 11 - Question: 17. What is SCOR, and what purpose does...Ch. 11 - Question: 11.1 Choose a local establishment that...Ch. 11 - Prob. 4PCh. 11 - Question: 11.3 Hau Lee Furniture, Inc., described...Ch. 11 - Question: 11.4 Kamal Fatehl, production manager...Ch. 11 - Question: 11.5 Baker Mfg. Inc. (see Table 11.9)...Ch. 11 - Question: 11.6 Arrow Distributing Corp. (see...Ch. 11 - Question: 11.7 The grocery industry has an annual...Ch. 11 - Question: 11.8 Mattress Wholesalers, Inc., is...Ch. 11 - Prob. 9PCh. 11 - Prob. 10PCh. 11 - Prob. 11PCh. 11 - Question: Dardens Global Supply Chains Video Case...Ch. 11 - Prob. 2CSCh. 11 - Question: Dardens Global Supply Chains Video Case...Ch. 11 - Prob. 4CSCh. 11 - Question Supply Chain Management at Regal Marine ...Ch. 11 - Question Supply Chain Management at Regal Marine ...Ch. 11 - Question Supply Chain Management at Regal Marine ...Ch. 11 - Prob. 2.1VCCh. 11 - Prob. 2.2VCCh. 11 - Prob. 2.3VCCh. 11 - Prob. 2.4VC
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- question #3 Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. With a safety stock of 300 boxes, what is the approximate service level (round to two decimals)? Numeric Response 84.13 * f5 10 f6 0 4- ♫+ fg C fil W f12. insert prt sc + 11 Ə ← delete backspace home num lock 4x D end 1:23 PM 11/15/2022 pg uparrow_forwardquestion #5 Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. Under the current order quantity of 5,000 boxes and current reorder point of 4,200 boxes, what would be the order-up-to level S that the retailer should use as a baseline to calculate how much inventory to order when conducting a periodic review? Numeric Response 1500 f4 ***** LA f5 40 % f6 4- 0 C + & 7 < Prev. 門 fg KAA * 8 5 of 5 DII hp f10 DDI 9 Next fi W f12. insert prt sc + 11 ( ← delete backspace home num lock end 1:24 PM 11/15/2022 pg uparrow_forwardQuestion and Observe: At what level of demand (number of units) per year would these two alternatives be equal? Graphically represent these two alternatives and their tradeoff point.arrow_forward
- Problem 3-14 (Algo) Demand for stereo headphones and music players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for this year was as follows: MONTH DEMAND (UNITS) 4,150 4,25e 3,950 4, 350 4,95e 4,650 5,25e 4,850 5,35e 5,65e 6,25e 5,95e January February March Аpril Мay June July August September October November December a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.8. (Do not round Intermedlate calculatlons. Round your answers to 2 decimal places.) Month Forecast January February March April May June July August September October November December b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors…arrow_forwardQ5. What are carrying and storage costs? Explain with examples of each.arrow_forwardQUESTION 2 Mogomotsi, a 27 year old graduate from Kopong, runs a small stock farm from a family ownedfarm at Metsimotlhabe. He obtains supplies (supplementary feed, medicines, tools) from localagrishops, hardwares. The government has recently secured markets in the Middle East for smallstock and rolled out programs to encourage more citizens to enter small stock farming business.Demand for weaners (sheep and goats), feed, medicines and all other implements has increased.Stud breeders and large-scale farmers have ramped up production to explore this opportunity.Traditionally, livestock was sold to Botswana Meat Commission, the government has liberalizedthis market with all chain stores setting up to take advantage to set butchery section to sell meat. a. In light of the above, conduct an industry analysis using Porter’s Five Forces Model.arrow_forward
- Question 2 Rohe (Hong Kong) Ltd is a pharmaceutical company which manufactures and supplies various drugs for drug stores in Asia. Currently, Rohe (Hong Kong) Ltd has four factories A, B, C and D. Management has decided to build a new factory at a location central to these factories. Information regarding the yearly demands and the map coordinates for the four factories are shown in below table. Factories Demand - x-coord 9,000- 3,000- 5,000 y-coord 130 40 A Be 20 60 Ce 70 100 De 16,000- 90 30 (a) Determine the map coordinates of the new factory. (b) Suggest and elaborate TWO other factors that need to consider in the selection of location. «arrow_forward12 points Q4. You are planning to shift in your new house very soon. But before shifting you want an electricity connection in your house. Write a request letter to KESC to provide a connection. [CLO 3] [12 Marks] Your answerarrow_forwardQuestion: What level of safety stock should be maintained? Please show the solution. Thank youarrow_forward
- Question2. Describe the options that McDonald’s and its suppliers can pursue to overcome the challenges of French Fries Supply Chain.arrow_forwardQ3. Polygram Sound Systems manufacturers and sell sound systems for both home and auto. All parts of the sound systems, with the exception of CD players, are produced in the Rochester, New York, plant. CD players used in the assembly of Concord, New Hampshire. Polygram purchasing agent Mary Kim submit a purchase requisition for CD players once every 4 weeks. The company's annual requirement is 24000 units, and the cost per unit is $40.00. Polygram does not purchase in greater quantities because Morris Electronics does not offer discounts and promises delivery within 1 week upon receiving the purchase requisition, and rarely is there a shortage of CD players. (Total time between date of order and date of receipt is 8 days). Associated with the purchase of each shipment, there are procurement costs which amount to $20 per order, (these includes the costs of preparing the requisition, inspecting and storing the delivered goods, updating inventory records, issuing a voucher and a check for…arrow_forwardQuestion 7. Discuss the advantages and disadvantages of strategic partnerships in the supply chain.arrow_forward
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