Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 12, Problem 1P
EBI Solar uses a high-tech process to turn silicon wafers into tiny solar panels. These efficient and inexpensive panels are used to power low-energy, handheld electronic devices. Last year, EBI Solar turned their inventory 4.5 times and had a cost of goods sold of $2.5 million. Assuming 52 business weeks per year:
- Express last year’s average inventory in weeks of supply.
- After several supply chain improvement initiatives, inventory investment has dropped across all inventory categories. While EBI’s cost of goods sold is not expected to change from last year’s level, the value of raw materials has dropped to $100,500; work-in-process to $25,800; amid finished goods to $16,200. Assuming 52 business weeks per year, express EBI’s current total inventory level in weeks of supply and inventory turns.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Hi please help me please,
Read the screenshot and answer the following questions:
1. Dawn understands her customers very well. She knows that they want two things: (1) speed in getting the sandwich, no matter what type and (2) the sandwich must taste fresh. As Dawn works out how to improve her inventory management process, how can she utilize the ABC inventory classification system as part of the remedy for this situation?
• Think outside the box. Consider which type of inventory she really needs to classify using the ABC classification system.
2. As we examine this case, we know that the basic issue is low inventory turnover. Consequently, the bins are overstocked during specific times and items must be discarded because they exceed the freshness quality time limit. As she considers this point, Dawn is debating if she needs to use the EOQ model or the EMQ model. Provide a recommendation to Dawn on which model would be the most effective for her situation. Explain why your choice is…
EBI Solar uses a high-tech process to turn silicon wafers into tiny solar panels. These efficient and inexpensive panels are used to power low-energy, hand-held electronic devices. Last year, EBISolar turned their inventory 4.5 times and had a cost of goods sold of $2.5 million. Assuming 52 business weeks per year:a. Express last year’s average inventory in weeks of supply.b. After several supply chain improvement initiatives, inventory investment has dropped across all inventory categories. While EBI’s cost of goods sold is not expected to change from last year’s level, the value of raw materialshas dropped to $100,500; work-in-process to $25,800; and finished goods to $16,200. Assuming 52 business weeks per year, express EBI’s current total inventory level in weeks of supply and inventory turns.
Arrow Distributing Corp. likes to track inventory by using weeks of supply as well as by inventory turnover.
Arrow Distributing Corp.
Net Revenue
$15,630
Cost of sales
$12,190
Inventory
$1,090
Total assets
$8,770
a) What is its weeks of supply?
weeks (round your response to two decimal places).
b) What is Arrow's inventory turnover?
times per year (round your response to two decimal places).
c) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's supply chain performance relative to the manufacturer's, as measured by inventory turnover, is
Chapter 12 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- The grocery industry has an annual inventoryturnover of about 14 times. Organic Grocers, Inc. had a costof goods sold last year of $10.5 million; its average inventory was $1.0 million. What was Organic Grocers’ inventoryturnover, and how does that performance compare with thatof the industry?arrow_forwardhow does inventory cost affect inventory size? Explain?arrow_forward10- Arwa accepts only either plastic currency or E-cash payment from her customers. Which type of retail business Arwa has? a. Online store b. Variety store c. Department store d. General merchandise storearrow_forward
- Baker Mfg Inc. wishes to compare its inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory. Baker Mfg. Inc. Net Revenue Cost of sales Inventory Total assets $27,500 $19,650 $1,300 $17,790 a) What is Baker's inventory turnover? times per year (round your response to two decimal places). b) What is Baker's percentage of assets committed to inventory? % (enter your response as a percentage rounded to two decimal places). c) How does Baker's performance compare to the industry leaders? Better In Line with Industry Worsearrow_forwardUse information in the case study and critically examine the process of receiving materials at the warehouse in a Retail. Enterprise in the Far South of Santa Catarina. Include relevant examples to support your answer.arrow_forwardCustomer satisfaction is the desired result of any supply chain management strategy. Q.1 - Explain to the managers of Converse, the relationship between flexibility, inventory, and customer satisfaction.Q.2 - Converse sneakers are produced in Indonesia. Identify the most suitable method of transport to be used for delivery from Indonesia to stores in South Africa. Motivate your answer. Q.3 - Would the following warehousing activities be necessary for Converse’s business?• Storage• Bulk breakingExplain your answerarrow_forward
- GIVE THE RECOMMENDATION AND CONCLUSION Office Depot has almost 1,000 office superstores and giant catalog of office supplies that it offers via mail order. Yet office Depot also enables its customers to shop on the internet. Its Web site offer virtually all the products Office Depot carries in its stores and catalogs and guarantees next-day delivery to most locations with no delivery charge on orders over 5K. online order tracking is available, and customized ordering, which takes into account the historical patterns of individual customers product purchases, is also a feature of Office Depot internet-based channel.arrow_forwardExplain Inventory Management Strategies of Cadbury Company? Note: please explain it in a very detailed manner(500 words)arrow_forward“Supply chain management has been a very vital tool in the competitive world of business, and this depends on the product and its supply chain. Managing inventory is a critical activity for the success of supply chain since inventory impacts the costs of goods sold as well as supports customer service”. Discuss the validity of this statementarrow_forward
- Explain how are service level and inventory level dependent on each other ?arrow_forwardSupply chain management has been a very vital tool in the competitive world of business, and this depends on the product and its supply chain. Managing inventory is a critical activity for the success of supply chain since inventory impacts the costs of goods sold as well as supports customer service”. Discuss the validity of this statement Detailyarrow_forward2. Which one is more effective and how? Justify your answer. • Pushbased supply chain management or pull-based supply chain management note: Answer very short please no need detailarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY