OPERATIONS MANAGEMENT >CUSTOM<
14th Edition
ISBN: 9781266767234
Author: Stevenson
Publisher: MCG CUSTOM
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Textbook Question
Chapter 12, Problem 1DRQ
What are the primary reasons for holding inventory?
Expert Solution & Answer
Summary Introduction
To determine: The primary reasons for holding inventory.
Introduction: Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Management of inventory is so much essential to manage cost and also to reduce cost.
Explanation of Solution
Primary reasons for holding inventory:
Stocks are held for various reasons by many organizations. However techniques like JIT, lean manufacturing are used, and few company rely on inventory. The primary reasons for holding inventory are,
- To meet the customer demand,
- To compensate production requirements,
- To decouple operations,
- To reduce the risks of stock outs,
- To hedge against price hikes,
- To permit operations,
- To take edge over order cycles and
- To take gain over quantity discounts.
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Students have asked these similar questions
The binding constraints for this problem are the second and third constraints are binding.
Min x1 + 2x2
s.t.
x1 + x2 ≤ 300
2x1 + x2 ≥ 400
2x1 + 5x2 ≥750
X1, X220
(a) Keeping the second objective function coefficient fixed at 2, over what range can the first objective function coefficient vary before there is a change in the optimal solution point?
The first objective coefficient can from a low of
to a high of
(b) Keeping the first objective function coefficient fixed at 1, over what range can the second objective function coefficient vary before there is a change in the optimal solution point?
The second objective coefficient can from a low of
to a high of
(c) If the objective function becomes Min 1.5x₁ + 2x2, what will be the optimal values of x1 and x2?
x1 =
X2
=
What is the value of the objective function at the minimum?
(d) If the objective function becomes Min 7x₁ + 6x2, what constraints will be binding? (Select all that apply.)
First Constraint
Second Constraint
Third Constraint…
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The Clark County Sheriff's Department schedules police officers for 8-hour shifts. The beginning times for the shifts are 8:00 a.m., noon, 4:00 p.m., 8:00 p.m., midnight, and 4:00 a.m. An officer beginning a shift at one of these times works for the next 8 hours. During
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Time of Day
8:00 A.M. Noon
Noon
-
4:00 P.M.
Minimum Officers Time of Day on Duty
4
7
4:00 P.M. - 8:00 P.M.
11
8:00 P.M. Midnight
6
Midnight 4:00 A.M.
4:00 A.M. -8:00 A.M.
3
7
Determine the number of police officers that should be scheduled to begin the 8-hour shifts at each of the six times (8:00 a.m., noon, 4:00 p.m., 8:00 p.m., midnight, and 4:00 a.m.) to minimize the total number…
discuss in detail the benefits of working in a team
Chapter 12 Solutions
OPERATIONS MANAGEMENT >CUSTOM<
Ch. 12.3 - Prob. 1RQCh. 12 - What are the primary reasons for holding...Ch. 12 - What are the requirements for effective inventory...Ch. 12 - Briefly describe each of the costs associated with...Ch. 12 - What potential benefits and risks do RFID tags...Ch. 12 - Prob. 5DRQCh. 12 - Prob. 6DRQCh. 12 - a. List the major assumptions of the EOQ model. b....Ch. 12 - Explain briefly how a higher carrying cost can...Ch. 12 - What is safety stock, and what is its purpose?
Ch. 12 - Prob. 10DRQCh. 12 - What is meant by the term service level? Generally...Ch. 12 - Describe briefly the A-B-C approach to inventory...Ch. 12 - The purchasing agent for a company that assembles...Ch. 12 - Explain how a decrease in setup time can lead to a...Ch. 12 - What is the single-period model, and under what...Ch. 12 - Can the optimal stocking level in the...Ch. 12 - Prob. 17DRQCh. 12 - What trade-offs are involved in each of these...Ch. 12 - Who needs to be involved in inventory decisions...Ch. 12 - How has technology aided inventory management? How...Ch. 12 - To be competitive, many fast-food chains began to...Ch. 12 - As a supermarket manager, how would you go about...Ch. 12 - Sam is at the post office to mail a package. After...Ch. 12 - Give two examples of unethical conduct involving...Ch. 12 - Prob. 1PCh. 12 - a. The following table contains figures on the...Ch. 12 - A bakery buys flours in 25-pound bags. The bakery...Ch. 12 - A large law firm uses an average of 40 boxes of...Ch. 12 - Garden Variety Flower Shop uses 750 clay pots a...Ch. 12 - A produce distributor uses 800 packing crates a...Ch. 12 - A manager receives a forecast for next year....Ch. 12 - A food processor uses approximately 27,000 glass...Ch. 12 - The Friendly Sausage Factory (FSF) can produce hot...Ch. 12 - A chemical firm produces sodium bisulfate in...Ch. 12 - A company is about to begin production of a new...Ch. 12 - Prob. 12PCh. 12 - A mail-order house uses 18,000 boxes a year....Ch. 12 - A jewelry firm buys semiprecious stones to make...Ch. 12 - A manufacturer of exercise equipment purchases the...Ch. 12 - A company will begin stocking remote control...Ch. 12 - A manager just received a new price list from a...Ch. 12 - A newspaper publisher uses roughly 800 feet of...Ch. 12 - Given this information: Expected demand during...Ch. 12 - Given this information: Lead-time demand = 600...Ch. 12 - Demand for walnut fudge ice cream at the Sweet...Ch. 12 - The injection molding department of a company uses...Ch. 12 - A company uses 85 circuit boards a day in a...Ch. 12 - One item a computer store sells is supplied by a...Ch. 12 - The manager of a car wash received a revised price...Ch. 12 - A small copy center uses five 500-sheet boxes of...Ch. 12 - Ned's Natural Foods sells unshelled peanuts by the...Ch. 12 - Regional Supermarket is open 360 days per year....Ch. 12 - A service station uses 1,200 cases of oil a year....Ch. 12 - Caring Hospital's dispensary reorders doses of a...Ch. 12 - A drugstore uses fixed-order cycles for many of...Ch. 12 - Prob. 32PCh. 12 - Prob. 33PCh. 12 - Demand for jelly doughnuts on Saturdays at Don's...Ch. 12 - A public utility intends to buy a turbine as part...Ch. 12 - Skinner's Fish Market buys fresh Boston bluefish...Ch. 12 - A small grocery store sells fresh produce, which...Ch. 12 - Demand for devil's food whipped-cream layer cake...Ch. 12 - Prob. 39PCh. 12 - Demand for rug-cleaning machines at Clyde's...Ch. 12 - A manager is going to purchase new processing...Ch. 12 - A Las Vegas supermarket bakery must decide how...Ch. 12 - Offwego Airlines has a daily flight from Chicago...Ch. 12 - UPD Manufacturing produces a range of health care...Ch. 12 - Prob. 1.2CQCh. 12 - Prob. 2.1CQCh. 12 - SARAH LUBBERS AND CHRIS RUSCHE, GRAND VALLEY STATE...Ch. 12 - SARAH LUBBERS AND CHRIS RUSCHE, GRAND VALLEY STATE...Ch. 12 - Prob. 3.3CQCh. 12 - SARAH LUBBERS AND CHRIS RUSCHE, GRAND VALLEY STATE...Ch. 12 - Prob. 3.5CQCh. 12 - Prob. 1OTQCh. 12 - Prob. 2OTQCh. 12 - Prob. 3OTQCh. 12 - Prob. 4OTQ
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