Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Textbook Question
Chapter 16, Problem 6P
Question
••• 16.6 Discount-Mart (see Problem 16.5), as part of its new JIT program, has signed a long-term contract with Specialty Lighting and will place orders electronically for its halogen lamps. Ordering costs will drop to $.50 per order, but Discount-Mart also reassessed its carrying costs and raised them to $20 per lamp.
- a. What is the new economic order quantity?
- b. How many orders will now be placed?
- c. What is the total annual cost of managing the inventory with this policy?
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Students have asked these similar questions
Question 25
The bullwhip effect can cause the variability in ________ to be substantially greater than variability in ________.
Group of answer choices
demand within the supply chain, supplier demand
supplier demand, demand within the supply chain
consumer demand, demand within the supply chain
demand within the supply chain, consumer demand
supplier demand, demand within the supply chain
Question 19
4 pts
Based on available information, lead time demand for PC jump drives averages 53 units (normally distributed), with a standard
deviation of 4 drives. Management wants a 93.7% service level. Refer to the standard normal table for z-values.
What is the appropriate safety stock? (round your response to the nearest whole number).
6 units
3 units
53 units
56 units
59 units
Question2: A company that sells fruit juices sells 1250 cases of fruit juice from cases priced at $50 per case in a month. The business is in city x and juices are ordered from city y. Each order costs the business $250. Storage costs are 20% of a case of fruit juice. According to this;a) the economic order quantity of the enterprise?b) How many days is the time between two orders?c) What is the total inventory cost of the business, including the acquisition costs, in dollars/month?
Chapter 16 Solutions
Operations Management
Ch. 16 - Question 1. What is JIT?Ch. 16 - Prob. 2DQCh. 16 - Question 3. What is TPS?Ch. 16 - Question 4. What is level scheduling?Ch. 16 - Question 5. JIT attempts to remove delays, which...Ch. 16 - Prob. 6DQCh. 16 - Question 7. How does TPS contribute to competitive...Ch. 16 - Prob. 8DQCh. 16 - Question 9. Discuss how the Japanese word for card...Ch. 16 - Question 10. Standardized, reusable containers...
Ch. 16 - Prob. 11DQCh. 16 - Prob. 12DQCh. 16 - Question 16.1 Leblanc Electronics, Inc., in...Ch. 16 - Question 16.2 Tej Dhakars company wants to...Ch. 16 - Question 16.3 Pauline Found Manufacturing, Inc.,...Ch. 16 - Prob. 4PCh. 16 - Question 16.5 Discount-Mart, a major East Coast...Ch. 16 - Question 16.6 Discount-Mart (see Problem 16.5),...Ch. 16 - Prob. 7PCh. 16 - Question 16.8 Carol Cagle has a repetitive...Ch. 16 - Question 16.9 Given the following information...Ch. 16 - Question 16.10 Rick Wing has a repetitive...Ch. 16 - Mutual Insurance Company of Iowa Mutual Insurance...Ch. 16 - Prob. 2CSCh. 16 - Prob. 3CSCh. 16 - Prob. 4CSCh. 16 - Question JIT at Arnold Palmer Hospital Video Case...Ch. 16 - Question JIT at Arnold Palmer Hospital Video Case...Ch. 16 - Question JIT at Arnold Palmer Hospital Video Case...Ch. 16 - Question JIT at Arnold Palmer Hospital Video Case...
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- question #3 Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. With a safety stock of 300 boxes, what is the approximate service level (round to two decimals)? Numeric Response 84.13 * f5 10 f6 0 4- ♫+ fg C fil W f12. insert prt sc + 11 Ə ← delete backspace home num lock 4x D end 1:23 PM 11/15/2022 pg uparrow_forwardquestion #5 Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. Under the current order quantity of 5,000 boxes and current reorder point of 4,200 boxes, what would be the order-up-to level S that the retailer should use as a baseline to calculate how much inventory to order when conducting a periodic review? Numeric Response 1500 f4 ***** LA f5 40 % f6 4- 0 C + & 7 < Prev. 門 fg KAA * 8 5 of 5 DII hp f10 DDI 9 Next fi W f12. insert prt sc + 11 ( ← delete backspace home num lock end 1:24 PM 11/15/2022 pg uparrow_forwardQUESTION 2 A) On the average, a firm has 10 weeks of work-in-process, and annual cost of goods sold is $15 million. Assuming that the company works 50 weeks a year: a) What is the dollar value of the work-in-process? b) If the work-in-process could be reduced to 7 weeks and the annual cost of carrying inventorv was 20% of the inventory value, what would be the annual saving? B). Warsop Factory sales are $10 million. The company spends $3.5 million for purchase of direct materials and $2.5 million for direct labor; overhead is $3.5 million and profit is $500,000. Direct labor and direct material vary directly with the cost of goods sold, but overhead does not. The company wants to triple its profit. By how much should the firm increase sales? By how much should the firm decrease material costs? By how much should the firm decrease labor cost? а. b. с.arrow_forward
- question #2 Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. If the retailer wants to achieve a 99% service level (use the z-value with one decimal, as in Table 13.4 on page 400 of the textbook), what should be the safety stock value? Numeric Response 772.8 SHARE f5 f6 4- f7 ♫+ fg fil W f12. insert prt sc delete home @ 0 end 1:23 PM 11/15/2022 pg Larrow_forwardQuestion 1A just-in-time inventory system (JIT), is an inventory strategy where raw materialsand supplies are ordered and received as they are needed.(a) Explain the benefits of using JIT system to Malaysian SMEs (smallmedium enterprises) clothing market. Answer should be with proper elaborations and examples. This is not a writting assignment. Thank youarrow_forwardQuestion 23 A truck maintenance facility has annual demand of 25000 gallons of motor oil and operates 360 days per year. The lead time from placement of an order for motor oil until delivery is 5 days and the standard deviation of daily usage is 12.5 gallons. Use z=1.28 for a 90% service level and determine the appropriate re-order point. O 347.22 gallons 35.77 gallons 383 gallons 370 gallonsarrow_forward
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