Operations and Supply Chain Management 9th edition
9th Edition
ISBN: 9781119320975
Author: Roberta S. Russell, Bernard W. Taylor III
Publisher: WILEY
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Chapter 13, Problem 2.1CP
The Texas Gladiators Apparel Store
The Texas Gladiators won the Super Bowl last year. As a result, sportswear such as hats, sweatshirts, sweatpants, and jackets with the Gladiators’ logo are popular. The Gladiators operate an apparel store outside the football stadium. It is near a busy highway, so the store has heavy customer traffic throughout the year, not just on game days. In addition, the stadium has high school or college football and soccer games almost every week in the fall, and baseball games in the spring and summer. The most popular single item the stadium store sells is a red and silver baseball-style cap with the Gladiators’ logo on it. The cap has an elastic headband inside it, which conforms to different head sizes. However, the store has had a difficult time keeping the cap in stock, especially during the time between the placement and receipt of an order. Often customers come to the store just for the hat; when it is not in stock, customers are upset, and the store management believes they tend to go to other competing stores to purchase their Gladiators’ clothing. To rectify this problem, the store manager, Jessica James, would like to develop an inventory control policy that would ensure that customers would be able to purchase the cap 99% of the time they asked for it. Jessica has accumulated the following demand data for the cap for a 30-week period. (Demand includes actual sales plus a record of the times a cap has been requested but not available and an estimate of the number of times a customer wanted a cap when it was not available but did not ask for it.)
The store purchases the hats from a small manufacturing company in Jamaica. The shipments from Jamaica are erratic, with a lead time of 20 days.
In the past, Ms. James has placed an order whenever the stock got down to 150 caps. What level of service does this reorder point correspond to? What would the reorder point and safety stock need to be to achieve the desired service level? Discuss how Jessica James might determine the order size of caps and what additional, if any, information would be needed to determine the order size.
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Chapter 13 Solutions
Operations and Supply Chain Management 9th edition
Ch. 13.S - Prob. 1QCh. 13.S - How are steady-state results achieved in a...Ch. 13.S - Prob. 3QCh. 13 - Describe the difference between independent and...Ch. 13 - Distinguish between a fixed-order-quantity system...Ch. 13 - Discuss customer service level for an inventory...Ch. 13 - Explain the ABC inventory classification system...Ch. 13 - Identify the two basic decisions addressed by...Ch. 13 - Describe the major cost categories used in...Ch. 13 - Explain how the order quantity is determined using...
Ch. 13 - What are the assumptions of the basic EOQ model,...Ch. 13 - How are the reorder point and lead lime related in...Ch. 13 - Describe how the production quantity model differs...Ch. 13 - How must the application of the basic EOQ model be...Ch. 13 - Why do the basic EOQ model variations not include...Ch. 13 - In the production quantity EOQ model, what would...Ch. 13 - Explain in general terms how a safety stock level...Ch. 13 - Explain the difference between a single-stage...Ch. 13 - AV City stocks and sells a particular brand of...Ch. 13 - AV City (Problem 13.1) assumed with certainty that...Ch. 13 - A firm is faced with the attractive situation in...Ch. 13 - The Sofaworld Company purchases upholstery...Ch. 13 - The Wallace Stationery Company purchases paper...Ch. 13 - The Ambrosia Bakery makes calms for freezing and...Ch. 13 - The EastCoasters Bicycle Shop operates 364 days a...Ch. 13 - The Chemeo Company uses a highly toxic chemical in...Ch. 13 - The Food Place Supermarket stocks Munehkin...Ch. 13 - Kroft Foods makes cheese to supply to stores in...Ch. 13 - The Shotz Brewery produces an ale that it stores...Ch. 13 - Tradewinds Imports is an importer of ceramics from...Ch. 13 - JAL Trading is a Hong Kong manufacturer of...Ch. 13 - In Problem 12.1 in Chapter 12, the Hartley-Davis...Ch. 13 - In Problem 12-2 in Chapter 12, Carpel City orders...Ch. 13 - In Problem 12.47 in Chapter 12, Delaplane...Ch. 13 - The Paramount Paper company produces paper from...Ch. 13 - Kellys Tavern serves Shamrock draft beer to its...Ch. 13 - The daily demand for Ironcoat paint at the Top...Ch. 13 - IM Systems assembles microcomputers from genetic...Ch. 13 - IM Systems assembles microcomputers from generic...Ch. 13 - KVS Pharmacy fills prescriptions fen a popular...Ch. 13 - Food Place Market stocks frozen pizzas in a...Ch. 13 - The Mediterranean Restaurant stocks a red Chilean...Ch. 13 - The Aztec Company stock a variety of parts and...Ch. 13 - The EastCoasters Bicycle Shop stocks bikes;...Ch. 13 - Tara McCoy is the office administrator for the...Ch. 13 - The concession stand at the Shelby High School...Ch. 13 - The Instant Paper Clip Office Supply Company...Ch. 13 - The Texas Gladiators Apparel Store The Texas...Ch. 13 - Pharr Foods Company Pharr Foods Company produces a...
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