OPERATIONS MANAGEMENT CUSTOM ACCESS
11th Edition
ISBN: 9780135622438
Author: KRAJEWSKI
Publisher: PEARSON EDUCATION (COLLEGE)
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Chapter 14, Problem 9P
Summary Introduction
Interpretation: The fleet size that contributes to yielding the lowest expected monthly costs for the company should be calculated.
Concept Introduction: Every mile a truck runs costs about $0.90 for maintenance. And, the rental cost of each truck per mile is $1.40.
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Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of
30
units and is valued at
$60
per unit. Inbound shipments from vendor 1 will average
330
units with an average lead time (including ordering delays and transit time) of
4
weeks. Inbound shipments from vendor 2 will average
450
units with an average lead time of
3
weeks.
Ruby-Star operates 52 weeks per year; it carries a
4-week
supply of inventory as safety stock and no anticipation inventory.
A. the average aggregate inventory value of the product if ruby star used vendor 1 exclusively is $_____ (enter your response as a whole number)
B. the average aggregate inventory value of the product if ruby sta used vendor 2 exclusively is $______ (enter your response as a whole number)
C. how would your analysis change if average weekly demand increased to 140 units per week?
the average aggregate inventory value of the product if ruby star used vendor 1…
We run a fresh produce stand at farmer’s market where we sell avocados and artichokes. Each morning, a supplier drops off bags of these products. We can buy up to 200 bags of avocados and up to 175 bags of artichokes each morning. We resell the bags to customers throughout the day. The contribution margin of avocados is $15/bag; the contribution margin of artichokes is $20/bag. We sell at least twice as many bags of avocados as we do artichokes. We have found that our normal daily demand is between 140 and 350 total bags
what are the constaints
Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 50 units and is valued at $75 per unit. Inbound shipments from vendor 1 will average 350 units with an average lead time (including ordering delays and transit time) of 2 weeks. Inbound shipments from vendor 2 will average 500 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a 2-week supply of inventory as safety stock and no anticipation inventory.a. What would be the average aggregate inventory value of this product if Ruby-Star used vendor 1 exclusively?b. What would be the average aggregate inventory value of this product if Ruby-Star used vendor 2 exclusively?c. How would your analysis change if average weekly demand increased to 100 units per week?
Chapter 14 Solutions
OPERATIONS MANAGEMENT CUSTOM ACCESS
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Prob. 5DQCh. 14 - Prob. 1PCh. 14 - Eight Flags operates several amusement parks in...Ch. 14 - Prob. 3PCh. 14 - Beagle Clothiers uses a weighted score for the...Ch. 14 - Prob. 5P
Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Acadia Logistics anticipates that it will need...Ch. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 1VCCh. 14 - Prob. 2VCCh. 14 - Prob. 3VCCh. 14 - Prob. 4VCCh. 14 - Prob. 1CCh. 14 - Prob. 2CCh. 14 - Prob. 3C
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