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
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Question
Chapter 12, Problem 2P
A
Summary Introduction
Interpretation: The required average aggregate inventory value, if the company is maintaining the same inventory turnover for the next year is to be determined.
Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.
B
Summary Introduction
Interpretation: Changes in inventory turns are to be discussed that should be adapted by Cyberphone to support next year’s sales with no increase in the average aggregate inventory value through better
Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.
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Explain the significance of good supply chain management in an organization.
Long detailed explanation using supply chain management and inventory management/project management theory and also include how each challenge would be addressed?
Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $42 million. During the year, the inventory of
accessories turned over six times. For the next year, Cyberphone plans to increase annual sales (at cost) by 25 percent.
a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year?
$1,750,000. (Enter your response as an integer.)
b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year's sales with no
increase in the average aggregate inventory value? O turns. (Enter your response rounded to one decimal place.)
Chapter 12 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
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