Practical Management Science
5th Edition
ISBN: 9781305734845
Author: WINSTON
Publisher: Cengage
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Chapter 12, Problem 27P
Summary Introduction
To identify: The reorder point at which the bakery must place the orders.
Inventory and supply chain models:
The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.
Expert Solution & Answer
Explanation of Solution
Model:
Formula:
Data table to calculate the reorder point for different lead times:
Cells A15 to B18 is selected and the input is given as shown below:
Output:
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Students have asked these similar questions
A logistics company applies the EOQ model to manage its inventory of spare parts
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Currently, the firm has just received an order. In how many days do they need to
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4 days
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None of the above. Demand is random, so the time until they reach the ROP
again is also random
A logistics company applies the EOQ model to manage its inventory of spare parts used for maintenance work for their trucks. Daily demand is normally distributed. The average daily demand is 10 units, with a standard deviation of 5 units. The EOQ is found to be 400 units and used as the order size for all orders. Order lead time is 4 days.
Currently, the firm has just received an order. In how many days do they need to place the next order?
A manufacturer has a production facility that requires 15,604 units of component JY21 per year.
Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a
lead time of 7 days. The unit purchase cost is $25.6 per unit. The cost to place and process an order
from the supplier is $121 per order. The unit inventory carrying cost per year is 10.5 percent of the
unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. If
the manufacturer uses a constant order quantity of 2,640 units per order, what is the annual holding
cost?
Use at least 4 decimal places.
Chapter 12 Solutions
Practical Management Science
Ch. 12.4 - Prob. 1PCh. 12.4 - Prob. 2PCh. 12.4 - Prob. 3PCh. 12.4 - Prob. 4PCh. 12.4 - Prob. 5PCh. 12.4 - Prob. 6PCh. 12.4 - Prob. 7PCh. 12.4 - Prob. 8PCh. 12.4 - Prob. 9PCh. 12.4 - Prob. 10P
Ch. 12.4 - Prob. 11PCh. 12.5 - Prob. 12PCh. 12.5 - Prob. 13PCh. 12.5 - Prob. 14PCh. 12.5 - Prob. 15PCh. 12.5 - Prob. 16PCh. 12.5 - Prob. 17PCh. 12.5 - Prob. 18PCh. 12.5 - Prob. 19PCh. 12.5 - Prob. 20PCh. 12.5 - Prob. 21PCh. 12 - Prob. 27PCh. 12 - Prob. 28PCh. 12 - Prob. 29PCh. 12 - Prob. 30PCh. 12 - Prob. 31PCh. 12 - Prob. 32PCh. 12 - Prob. 33PCh. 12 - Prob. 34PCh. 12 - Prob. 35PCh. 12 - Prob. 36PCh. 12 - Prob. 38PCh. 12 - Prob. 39PCh. 12 - Prob. 40PCh. 12 - Prob. 42PCh. 12 - Prob. 43PCh. 12 - Prob. 44PCh. 12 - Prob. 45PCh. 12 - Prob. 46PCh. 12 - Prob. 47PCh. 12 - Prob. 48PCh. 12 - Prob. 49PCh. 12 - Prob. 53PCh. 12 - Prob. 54PCh. 12 - In terms of K, D, and h, what is the average...Ch. 12 - Prob. 56PCh. 12 - Prob. 57PCh. 12 - Prob. 58PCh. 12 - Prob. 59PCh. 12 - Prob. 60PCh. 12 - Prob. 61PCh. 12 - Prob. 62PCh. 12 - Prob. 63PCh. 12 - Prob. 64PCh. 12 - Prob. 65PCh. 12 - Prob. 66PCh. 12 - Prob. 67PCh. 12 - Prob. 68PCh. 12 - Prob. 69PCh. 12 - Prob. 70PCh. 12 - Prob. 71PCh. 12 - Prob. 1.1CCh. 12 - Prob. 1.2CCh. 12 - Prob. 1.3C
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