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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Textbook Question
Chapter 13, Problem 21P
In Problem 12.1 in Chapter 12, the Hartley-Davis motorcycle dealership in the Minneapolis-St. Paul orders the Roadhog Super motorcycle it sells from the manufacturer in Japan. Using the three-month moving average
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Maira Hijab Enterprise (MHE) is a supplier that sells Exclusive Embroidery Silk Hijabs to
boutique and online resellers. The annual demand is approximately 360 hijabs. MHE pays
RM50 for each hijab and estimates that the annual holding cost is 2 percent of the hijab's
value. It costs approximately RM100 to place an order (managerial and clerical costs).
Required:
Determine the economic order quantity (EOQ) (Round up your answers to the nearest
figure).
а.
b.
Assuming a 300-day work year, how many orders should be processed per year and
what is the expected time between orders?
С.
Calculate the total cost for the order.
d.
After several months of the introduction of the Exclusive Hijab, MHE decides to
all costs related to their product due to the increment of hijab’s costs by the supplier.
MHE currently orders 1000 hijabs per month. The new information as regards to the
Exclusive Hijab is as follows:
i. The ordering cost for these is RM100 per order and
ii. The carrying cost is assumed…
13.13 The TransCanada Lumber Company and Mill processes 10,000 logs annually,
operating 250 days per year. Immediately upon receiving an order, the logging
company's supplier begins delivery to the lumber mill at the rate of 60 logs per day. The
lumber mill has determined that the ordering cost is $1600 per order, and the cost of
carrying logs in inventory before they are processed is $15 per log on an annual basis.
Determine the following:
a. The optimal order size
b. The total inventory cost associated with the optimal order quantity
c. The number of operating days between orders
d. The number of operating days required to receive an order
Happy Pet, Inc., is a large pet store located in LongBeach Mall. Although the store specializes in dogs, it a lso sellsfish, turtle, and bird supplies. The Everlast Leader, a leather leadfor dogs, costs Happy Pet $7 each. There is an annual demand for6,000 Everlast Leaders. The manager, Stephan Wagner, has determinedthat the ordering cost is $20 per order and the carrying cost,as a percentage of unit cost, is 15%. Happy Pet is now consideringa new supplier of Everlast Leaders. Each lead would cost only$6.65, but, in order to get this discount, Happy Pet would have tobuy shipments of 3,000 at a time. Should Happy Pet use the newsupplier and take this discount for quantity buying?
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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