Concept explainers
To determine: Which shipping alternative would be most economical.
Introduction: Supply chain defined as a sequence of associations, their offices, capacities, and actions that are engaged with manufacturing and conveying a product or administration. The chain starts with essential providers of raw materials and stretches out the distance to the last client. The supply chain fragment required with getting the completed item from the producer to the purchaser is known as distribution channel.
A supply chain is a sequence starts with essential providers or raw materials and stretches out the distance to an item or administration. No business association can exist without the two operations and supply chain.
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STEVENSON OPERATIONS MANAGEMENT W/CONNEC
- The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.arrow_forwardPlease solve very soon completely all partsarrow_forwardPlease do not give solution in image format thanku 1) Determine which shipping alternative would be most economical to ship 80 boxes of parts when each box has a price of $200 and holding costs are 30 percent of price, given this shipping information: overnight, $300, two-day, $260, six-day, $180.arrow_forward
- The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days. If the order size was 1,000 kilograms of resin, what would be the average inventory level?arrow_forwardThe company Marombeiro is a commercial representative of a food supplement widely consumed in gyms. The average daily demand for the product is 1,500 units and a standard deviation of 300 units. Average shipping time is 5 days. Of course, if the order is placed at the end of the week, it may take a little longer to receive the shipment, so the standard deviation of the delivery time is 2 days. The unit has a value of R$ 50.00 per unit in stock, an order cost of R$ 50.00 and an annual maintenance fee of 20%. Assume the service level is 99.5%. How much safety stock should the company have? ( )7,500 units ( )19,350 units ( )3,074 units ( )7,916 unitsarrow_forwardThe company Marombeiro is a commercial representative of a food supplement widely consumed in gyms. The average daily demand for the product is 1,500 units and a standard deviation of 300 units. Average shipping time is 5 days. Of course, if the order is placed at the end of the week, it may take a little longer to receive the shipment, so the standard deviation of the delivery time is 2 days. The unit has a value of R$ 50.00 per unit in stock, an order cost of R$ 50.00 and an annual maintenance fee of 20%. Suppose the company Marombeiro wants to have a Service Level of 97%. What would be the safety stock that would guarantee this level of service? ( )3,460 units ( )7,930 units ( )5,768 units ( )4,826 unitsarrow_forward
- Xemex has collected the following inventory data for the six items that it stocks: ITEM CODE UNIT COST ($) ANNUAL DEMAND (UNITS) ORDERING COST ($) CARRYING COST AS A PERCENTAGE OF UNIT COST 1 10.60 600 40 20 2 11.00 450 30 25 3 2.25 500 50 15 4 150.00 560 40 15 5 4.00 540 35 16 6 4.10 490 40 17 Lynn Robinson, Xemex’s inventory manager, does not feel that all of the items can be controlled. What ordered quantities do you recommend for which inventory product(s)?arrow_forwardCryolab Inc makes and sells a lawn fertilizer called Hypergro. The company has developed standard costs for one bag of Hypergro as follows: Standard Quantity/Hours Standard Price/Rate Standard Cost per Bag Direct Material 25 pounds ₱ 0.75 ₱18.75 Direct Labor 0.25 hours ₱69.00 ₱17.30 Variable overhead 0.25 hours ₱24.00 ₱ 6.00 Total ₱42.05 The company had no beginning inventories of any kind on January 1. Variable overhead is applied to production on the basis of standard direct labor hours. During January, the following activity was recorded by the company: Production of Fastgro: 23,000 bags Direct materials purchased: 585,000 pounds at a cost of ₱436,250 Direct labor worked: 5,800 hours at a cost of ₱397,300 Variable overhead incurred: ₱140,650 Inventory of direct materials on January 31: 8,000 pounds Compute the variances and indicate whether it is FAVORABLE (F) or UNFAVORABLE (U) in your solution sheet. The raw…arrow_forwardPlease do not give solution in image format thankuarrow_forward
- The Tiernan Gallery and Art Museum distributes to its visitors a printed guide to its collection. There are about 18,000 visitors per year. Carrying costs for the brochures is charged at a rate of 20%. It costs $30 to place an order with the printer. The printer has offered the following discount schedule: Category Order Size Unit Cost 1 0- 1499 2.50 2 1500 – 2999 2.20 3 3000 and up 1.80 How many should they order to get the lowest total cost? O 1,469.7 O 1,500.0 O 1,566.7 O 3,000.0arrow_forwardItem X is a typical object stored in a company's replacement parts warehouse. Per year, the company uses about 2,000 Item X items, and costs Php 1,000 per product. Both premiums and capital charges, storage costs contribute to 18 percent of item unit costs. It costs Php 400 to place an order for more of Item X. It runs 360 days a year and Item X is sent 9 days after order placing. How much Item X units can each be ordered? A. 94 parts. B. 95 parts C. 100 parts D. 2 thousand unitsarrow_forwardWhat are the alternate inventory classifications names for cycle, buffer, in-transit, and speculative stock? Group of answer choices raw materials, anticipation, in-transit, and decoupling stock base, safety, pipeline, and speculative stock normal, extra, mobile, and speculative stock base, safety, pipeline, and psychic stockarrow_forward
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning