Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 12, Problem 47P
Question
•• 12.33 First Printing has contracts with legal firms in San Francisco to copy their court documents. Daily demand is almost constant at 12,500 pages of documents. The lead time for paper delivery is
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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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Question 11
You are responsible for maintaining an appropriate amount of inventory for Component A, using a Q-type
inventory control system (fixed quantity, continuous review). Your company estimates your ordering cost to
be 500 and the annual cost of holding this item in inventory to be 12. Annual demand for this item is
forecasted to be 5,000 and the company has 300 working days per year. Your supplier's lead time is 15
days.
What should your reorder point be if the standard deviation of daily demand is 30 and your target customer
service level is 95%? (Round to the nearest integer.)
Your Answer:
Answer
Question 12
You are responsible for maintaining an appropriate amount of inventory for Component A, using a P-type
inventory control system (periodic review) with P=30. Your supplier's lead time is 20 days. Daily demand
averages 400, with a standard deviation of 200.
How much safety stock will you need if your target customer service level is 95%? (Round to the nearest
integer.)
Your…
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
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1:23 PM
11/15/2022
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Chapter 12 Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Ch. 12 - Question 1. Describe the four types of inventory.Ch. 12 - Question
2. With the advent of low-cost...Ch. 12 - Question
3. What is the purpose of the ABC...Ch. 12 - Question
4. Identify and explain the types of...Ch. 12 - Question 5. Explain the major assumptions of the...Ch. 12 - Question 6. What is the relationship of the...Ch. 12 - Question
7. Explain why it is not necessary to...Ch. 12 - Question 8. What are the advantages of cycle...Ch. 12 - What impact does a decrease in setup time have on...Ch. 12 - When quantity discounts are offered, why is it not...
Ch. 12 - What is meant by service level?Ch. 12 - Explain the following: All things being equal, the...Ch. 12 - Describe the difference between a fixed-quantity...Ch. 12 - Explain what is meant by the expression robust...Ch. 12 -
15. What is “safety stock”? What does safety...Ch. 12 - When demand is not constant, the reorder point is...Ch. 12 - How are inventory levels monitored in retail...Ch. 12 - State a major advantage, and a major disadvantage,...Ch. 12 - L. Houts Plastics is a large manufacturer of...Ch. 12 - Boreki Enterprises has the following 10 items in...Ch. 12 - Jean-Marie Bourjollys restaurant has the following...Ch. 12 - Lindsay Electronics, a small manufacturer of...Ch. 12 - William Bevilles computer training school, in...Ch. 12 - • 12.6 If D = 8,000 per month, S = $45 per order,...Ch. 12 - Henry Crouchs law office has traditionally ordered...Ch. 12 - Matthew Liotines Dream Store sells beds and...Ch. 12 - Southeastern Bell stocks a certain switch...Ch. 12 - Lead time for one of your fastest-moving products...Ch. 12 - Annual demand for the notebook binders at Duncans...Ch. 12 - Thomas Kratzer is the purchasing manager for the...Ch. 12 - Joe Henrys machine shop uses 2,500 brackets during...Ch. 12 - Abey Kuruvilla, of Parkside Plumbing, uses 1,200...Ch. 12 - ••• 12.15 M. Cotteleer Electronics supplies...Ch. 12 - •• 12.16 Race One Motors is an Indonesian car...Ch. 12 - Radovilsky Manufacturing Company, in Hayward,...Ch. 12 - Arthur Meiners is the production manager of...Ch. 12 - Cesar Rego Computers, a Mississippi chain of...Ch. 12 - Bell Computers purchases integrated chips at 350...Ch. 12 - Wang Distributors has an annual demand for an...Ch. 12 - Question 12.22 The catering manager of La Vista...Ch. 12 - Prob. 25PCh. 12 - Prob. 26PCh. 12 - Prob. 27PCh. 12 - Question 12.26 Emery Pharmaceutical uses an...Ch. 12 - Prob. 29PCh. 12 - Prob. 30PCh. 12 - Question 12.27 Barbara Flynn is in charge of...Ch. 12 - Question 12.28 Based on available information,...Ch. 12 - Question 12.29 Authentic Thai rattan chairs...Ch. 12 - Question 12.30 Tobacco is shipped from North...Ch. 12 - Prob. 45PCh. 12 - Question 12.32 Chicagos Hard Rock Hotel...Ch. 12 - Question 12.33 First Printing has contracts with...Ch. 12 - Prob. 48PCh. 12 - Question 12.40 A gourmet coffee shop in downtown...Ch. 12 - Question 12.36 Cynthia Knotts oyster bar buys...Ch. 12 - Question 12.37 Henrique Correas bakery prepares...Ch. 12 - Question 12.38 University of Florida football...Ch. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Parker Hi-Fi Systems Parker Hi-Fi Systems, located...Ch. 12 - Parker Hi-Fi Systems Parker Hi-Fi Systems, located...Ch. 12 - Parker Hi-Fi Systems Parker Hi-Fi Systems, located...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Inventory Control at Wheeled Coach Video Case...Ch. 12 - Prob. 2.2VCCh. 12 - Prob. 2.3VC
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- question #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 2arrow_forwardQuestion 2 Prince Electronics, a manufacturer of consumer electronic goods, has five distribution centers in different regions of the country. For one of its products, a highspeed modem priced at $340 per unit, the average weekly demand at each distribution center is 70 units. Average shipment size to each distribution center is 400 units, and average lead time for delivery is 2 weeks. Each distribution center carries 2 week's supply as safety stock but holds no anticipation inventory. On average, how many dollars of pipeline inventory will be in transit to each distribution center? $________________________ (Enter your response as an integer.) How much total inventory (cycle, safety, and pipeline) does Prince hold for all five distribution centers? __________________________units. (Enter your response as an integer.)arrow_forward
- question 3 Sam's Cat Hotel operates 52weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about these bags. Refer to the standard normal table AT END for z-values. ≻Demand= 92 bags/week ≻Order cost =$58/order ≻Annual holding cost =26 percent of cost ≻Desired cycle-service level=99 percent ≻Lead time = 1 week(s) (5 working days) ≻Standard deviation of weekly demand = 20 bags ≻Current on-hand inventory is 310 bags, with no open orders or backorders. a. What is the EOQ? Sam's optimal order quantity is__________ bags. (Enter your response rounded to the nearest whole number.) What would be the average time between orders (in weeks)? The average time between orders is _________weeks. (Enter your response rounded to one decimal place.) b. What should R be? The reorder point is _________ bags. (Enter your response rounded to the…arrow_forwardQuestion2: A company that sells fruit juices sells 1250 cases of fruit juice from cases priced at $50 per case in a month. The business is in city x and juices are ordered from city y. Each order costs the business $250. Storage costs are 20% of a case of fruit juice. According to this;a) the economic order quantity of the enterprise?b) How many days is the time between two orders?c) What is the total inventory cost of the business, including the acquisition costs, in dollars/month?arrow_forwardExplain the concept of setup or ordering costs and its relevance to EOQ.arrow_forward
- Question 4 Illustrate Guardian pharmacy’s reorder system to manage their inventory so meet customer expectation. answer guidelines To use order point system and periodic review system. Illustrate its characteristics/advantage in the context of managing inventory in a pharmacy. For example: 1. Order point system - When the quantity of an item on hand in inventory falls to a predetermined level, an order is placed. • The quantity ordered is based on economic order quantity (EOQ). • Order quantity are usually fixed. • The order point is determined by the average demand during the lead time. • If the average demand or the lead time changes, there is no corresponding change in the order point, effectively there is a change in the safety stock. • The interval between replenishment are not constant but vary depending on the actual demand during the order cycle. Usually used for stocks that are longer to sell from the store so to…arrow_forwardQUESTION #4 James Marshall, owner and operator of the Hearing Bells Megastore, is reviewing the costs associated with the store's best-selling hearing aid, the HB100. The data available to Mr. Marshall concerning this device follow. 30 units/week Demand Order cost = $5/order Holding cost = $2.50/unit/year %3D The Hearing Bells Megastore operates 52 weeks a year. a. What is the EOQ? b. Given the data from above, and assuming a 300-day work year; how many orders should be processed per year? What is the expected time between orders? c. What is the total cost for the inventory?arrow_forwardQUESTION 15 ID-planned order release using EOQ technique Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $2 per month and each setup costs $80. Lead time is 0 months. Calculate the planned order releases using: the EOQ technique including the holding cost of any inventory left over after month 7? Month Requirement 1 400 What is the total cost? 2016 2509 1405 1536 2 150 3 200 150 100 150 250arrow_forward
- Question 29 Which one of the following methods will be most suitable for managing dependent demand? Q-model ABC Analysis P-model The single-period model Material Requirements Planningarrow_forwardQuestion 1 Consider again managing inventory for product 101, provided by Supplier A. Recall thatdemand for 101 is approximately d = 200 units per week. You pay a purchase cost p = $500per unit and value your inventory at r = $550 per unit. You estimate your inventory carry-ing cost rate at r = 18% per year; storing one item of product 101 in your DC requires anequivalent rent (storage cost) of s = $10 per unit per year.Use truckload shipping for your orders of product 101; recall then that your total fixedcost (k + F ) = $900 for any order of size no greater than Q = 700 units. You estimate atotal lead time (order processing plus transit time) of 12 days for these shipments.To reduce your logistics costs, you decide that it might be worthwhile to backorder someof the customer demand you face each cycle. When backordering, you will delay your out-bound shipping of some of your customers’ orders.arrow_forwardQuestion 20 4 pts A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 60 pounds of Kona coffee beans a day. (Demand can be assumed to be distributed normally with a standard deviation of 15 pounds per day). After ordering (fixed cost $15 per order), beans are always delivered from Hawaii in exactly 4 days. Per-pound annual holding %3D costs for the beans are $3. What is the economic order quantity (EOQ) for Kona coffee beans? (round your response to the nearest whole number) 346 24 385 800 12.000arrow_forward
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