EBK OPERATIONS MANAGEMENT
13th Edition
ISBN: 8220103675987
Author: Stevenson
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 6DRQ
Summary Introduction
To determine: The ways in which the results of ABC classification can be used by managers.
Introduction: Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. ABC classification is a material management technique where the materials are classified based on the impact they create on the inventory cost.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Assessment of significant corporate decisions if both organizations, in relation to both purchasing& supply chain management for H&M and marks & spencer
Why are more top managers recognizing the importance of purchasing/supply management?
In which one of the following situations/circumstances is it most reasonable for a company to
consider modifying its strategy to cater to buyers looking to purchase stylish high-quality
athletic footwear by strongly differentiating its branded footwear from the offerings of rival
companies on the basis of "high" S/Q ratings (8.5 stars or higher) and marketing this
footwear at well above-average prices?
When the managers of most other companies believe selling a large volume of branded
pairs is much more important to achieving the investor-expected image rating than is
producing and marketing branded footwear with a well-above average S/Q rating
When most every other rival company seems to be pursuing a low-cost/low-price/high-
volume strategy
When a company's strategy to differentiate its product offering from rival brands on the
basis of a high S/Q rating is easily defeated by rival companies pursuing a competitive
advantage based on well above-average spending for brand advertising…
Chapter 13 Solutions
EBK OPERATIONS MANAGEMENT
Ch. 13 - What are the primary reasons for holding...Ch. 13 - What are the requirements for effective inventory...Ch. 13 - Briefly describe each of the costs associated with...Ch. 13 - What potential benefits and risks do RFID tags...Ch. 13 - Prob. 5DRQCh. 13 - Prob. 6DRQCh. 13 - a. List the major assumptions of the EOQ model. b....Ch. 13 - Explain briefly how a higher carrying cost can...Ch. 13 - What is safety stock, and what is its purpose?Ch. 13 - Prob. 10DRQ
Ch. 13 - What is meant by the term service level? Generally...Ch. 13 - Describe briefly the A-B-C approach to inventory...Ch. 13 - The purchasing agent for a company that assembles...Ch. 13 - Explain how a decrease in setup time can lead to a...Ch. 13 - What is the single-period model, and under what...Ch. 13 - Can the optimal stocking level in the...Ch. 13 - Prob. 17DRQCh. 13 - What trade-offs are involved in each of these...Ch. 13 - Who needs to be involved in inventory decisions...Ch. 13 - How has technology aided inventory management? How...Ch. 13 - To be competitive, many fast-food chains began to...Ch. 13 - As a supermarket manager, how would you go about...Ch. 13 - Sam is at the post office to mail a package. After...Ch. 13 - Give two examples of unethical conduct involving...Ch. 13 - Prob. 1PCh. 13 - a. The following table contains figures on the...Ch. 13 - A bakery buys flours in 25-pound bags. The bakery...Ch. 13 - A large law firm uses an average of 40 boxes of...Ch. 13 - Garden Variety Flower Shop uses 750 clay pots a...Ch. 13 - A produce distributor uses 800 packing crates a...Ch. 13 - A manager receives a forecast for next year....Ch. 13 - A food processor uses approximately 27,000 glass...Ch. 13 - The Friendly Sausage Factory (FSF) can produce hot...Ch. 13 - A chemical firm produces sodium bisulfate in...Ch. 13 - A company is about to begin production of a new...Ch. 13 - Prob. 12PCh. 13 - A mail-order house uses 18,000 boxes a year....Ch. 13 - A jewelry firm buys semiprecious stones to make...Ch. 13 - A manufacturer of exercise equipment purchases the...Ch. 13 - A company will begin stocking remote control...Ch. 13 - A manager just received a new price list from a...Ch. 13 - A newspaper publisher uses roughly 800 feet of...Ch. 13 - Given this information: Expected demand during...Ch. 13 - Given this information: Lead-time demand = 600...Ch. 13 - Demand for walnut fudge ice cream at the Sweet...Ch. 13 - The injection molding department of a company uses...Ch. 13 - A company uses 85 circuit boards a day in a...Ch. 13 - One item a computer store sells is supplied by a...Ch. 13 - The manager of a car wash received a revised price...Ch. 13 - A small copy center uses five 500-sheet boxes of...Ch. 13 - Ned's Natural Foods sells unshelled peanuts by the...Ch. 13 - Regional Supermarket is open 360 days per year....Ch. 13 - A service station uses 1,200 cases of oil a year....Ch. 13 - Caring Hospital's dispensary reorders doses of a...Ch. 13 - A drugstore uses fixed-order cycles for many of...Ch. 13 - Prob. 32PCh. 13 - Prob. 33PCh. 13 - Demand for jelly doughnuts on Saturdays at Don's...Ch. 13 - A public utility intends to buy a turbine as part...Ch. 13 - Skinner's Fish Market buys fresh Boston bluefish...Ch. 13 - A small grocery store sells fresh produce, which...Ch. 13 - Demand for devil's food whipped-cream layer cake...Ch. 13 - Prob. 39PCh. 13 - Demand for rug-cleaning machines at Clyde's...Ch. 13 - A manager is going to purchase new processing...Ch. 13 - A Las Vegas supermarket bakery must decide how...Ch. 13 - Offwego Airlines has a daily flight from Chicago...Ch. 13 - UPD Manufacturing produces a range of health care...Ch. 13 - Prob. 1.2CQCh. 13 - Prob. 2.1CQCh. 13 - Grill Rite is an old-line company that started out...Ch. 13 - SARAH LUBBERS AND CHRIS RUSCHE, GRAND VALLEY STATE...Ch. 13 - SARAH LUBBERS AND CHRIS RUSCHE, GRAND VALLEY STATE...Ch. 13 - Prob. 4.3CQCh. 13 - SARAH LUBBERS AND CHRIS RUSCHE, GRAND VALLEY STATE...Ch. 13 - Prob. 4.5CQCh. 13 - Prob. 1OTQCh. 13 - Prob. 2OTQCh. 13 - Prob. 3OTQCh. 13 - Prob. 4OTQ
Knowledge Booster
Similar questions
- Why does balance scorecard differ from company to company?arrow_forwardIn Conducting B/C Analysis Why Is It Best To Take A Limited View Point In Determining Benefits And Disbenefits?arrow_forwardWhy is it increasingly important that firms engage in sustainability? What are some ways that strategies for the Four Ps can include sustainability?arrow_forward
- With extensive knowledge and experience in their respective fields, institutions such as the Edna Manley College and the Caribbean Maritime University are all described as “Niche Schools” for all of the following reasons EXCEPTarrow_forwardScenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?arrow_forwardScenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.arrow_forward
- Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?arrow_forwardin your own words write a clear value proposition for Zaraarrow_forwardDiscuss the Situation Analysis (6 Cs) for the Ebay company.arrow_forward
- What are the competitive product strategy of Minerva Bags in Paris? What are the company resources and experience of Minerva Bags in Paris? Who are the competiors in each market of Minerva bags in Paris? What are the competiors in each market of Minerva bags in Paris?arrow_forwardIdentify this organisation’s key stakeholder groups and their specific expectations of the organisation. Describe the corporate social responsibility (CSR) of Coca Cola Amatil and how does this organisation improve their social impact on this group of stakeholders.arrow_forwardOne of the following statements about Competitor Rivalry is NOT true in Porter 5 Force analysis Seleccione una: a. Differentiated products among competitors in an industry is associated with high industry profits b. Few competitors in an industry is associated with high industry profits c. Low Fixed costs in an industry is associated with high industry profits d. Industries with perishable products are associated with high industry profits e. Increasing industry sales is associated with high industry profitsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning