Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 16, Problem 6P
Question
•• 16.3 Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed.
Setup cost = $30
Annual holding cost = $120 per subassembly
Daily production = 20 subassemblies
Annual usage = 2,500 (50 weeks × 5 days each × daily usage of 10 subassemblies)
Lead time = 16 days
Safety stock = 4 days’ production of subassemblies.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Question NO. 4
Convinced by the efficiency of hybrid model, Sony, started to produce LED filaments of its Soy TV's
itself while outsourcing all its other components. Initially, Sony can only produce these LED filaments at a
very steady rate of eight hundred per day. Three hundred TVs are assembled daily in eight hours shift, 250
days a year. Due to difference in TVs demands and its production, LED filaments are only produced in
batches of 2,000 units. Your are required to estimate;
Annual production of LED filament batches in numbers
b. Starting with zero inventory, if usage and production remains the same what would be the inventory
levels after 76 hrs.
Calculate average inventory levels when each production cycle starts with zero inventory.
d. The same equipment that is used to make the LED filaments could also be used to make another
filament used in the firm's other products. That job would require four days, including setup time.
Setup time for making a batch of the LED filament…
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
Question 3
Which of the following Inventory Holding Costs refers to the cost associated with return on the
investment in inventory?
Service
Capital Cost
Space
Risk
Chapter 16 Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
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 16.8 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 - Prob. 4PCh. 16 - Question 16.2 Tej Dhakars company wants to...Ch. 16 - Question 16.3 Pauline Found Manufacturing, Inc.,...Ch. 16 - Prob. 7PCh. 16 - Question 16.5 Discount-Mart, a major East Coast...Ch. 16 - Question 16.6 Discount-Mart (see Problem 16.5),...Ch. 16 - Prob. 10PCh. 16 - Prob. 1.1VCCh. 16 - Prob. 1.2VCCh. 16 - Prob. 1.3VCCh. 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...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- QUESTION 28 Since information systems keep track of inventory levels, there is little need to perform periodic inventory counts.TrueFalsearrow_forwardQuestion 29 Kona's Manufacturing purchases 7000 boxes of organic dog treats per year. Boxes of the treats are priced as follows: 1 to 999 $1.30 dollars each, 1,000-1,499: $0.80 cents each, and 1,500 or more: $0.65 cents each. It costs $25 to prepare an order and receive it and carrying costs are 25 percent of unit cost per unit on an annual basis. Determine the feasible order quantity (you do not need to determine the total cost for this problem). O 1038 O 1686 O1323 O 1075 1468arrow_forwardQuestion 3 Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 2,750 rolls. The cost per roll is $875, and the annual holding cost is 28 percent of the cost. Each order costs $75. How many rolls should Yellow Press order at a time? _______________rolls at a time. (Enter your response rounded to the nearest whole number.) What is the time between orders? (Assume 200 workdays per year.) __________________days. (Enter your response rounded to one decimal place.)arrow_forward
- 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 chainarrow_forwardQUESTION 5 Peet's Coffees in Menlo Park, California, sells Melitta Number 101 coffee filters at a fairly steady rate of about 70 boxes of filters monthly. The filters are ordered from a supplier in Trenton, New Jersey. Peet's manager is interested in applying some inventory theory to determine the best replenishment strategy for the filters. Peet's pays $2.80 per box of filters and estimates that fixed costs of employee time for placing and receiving orders amount to about $20. Peet's uses a 22 percent annual interest rate to compute holding costs. How large a standing order should Peet's have with its supplier in Trenton, and how often should these orders be placed? EOQ= 216.22 Cycle=3 in yearsarrow_forwardQuestion 5 Safety Stock Model Consider the following information on an inventory management system (one year is 50 weeks, one year is 365 days and 1 week is 7 days): Item Cost:$10 Order Cost:$250 Annual Holding Cost:33% of item cost Average Demand:515 per week Std. Dev. of Demand:125 per week Lead time:14 days a) Ignoring the uncertainty in the demand (i.e. looking only at average values), find the optimal order quantity and the reorder point. b) Consider now the uncertainty. The order quantity remains the same. If the target is to have a 98% annual service level, what should be the ROP? What is the safety stock? c) If the ROP is 1178 units (note that z value has been changed), what is the corresponding annual service level that the firm can provide?arrow_forward
- Question 29 Which one of the following methods will be most suitable for managing dependent demand? Q-model ABC Analysis P-model The single-period model Material Requirements Planningarrow_forwardQ7arrow_forwardQuestion 23 Company A carries 5,000 items. Customers ordered 1,000 items from inventory last week. Company A was able to fulfill 600 items of the order. What is the stock out probability for last week? Group of answer choices 0.08 0.4 0.6 0.92arrow_forward
- Question 4 Illustrate Guardian pharmacy’s reorder system to manage their inventory so meet customer expectation. answer guidelines To use order point system and periodic review system. Illustrate its characteristics/advantage in the context of managing inventory in a pharmacy. For example: 1. Order point system - When the quantity of an item on hand in inventory falls to a predetermined level, an order is placed. • The quantity ordered is based on economic order quantity (EOQ). • Order quantity are usually fixed. • The order point is determined by the average demand during the lead time. • If the average demand or the lead time changes, there is no corresponding change in the order point, effectively there is a change in the safety stock. • The interval between replenishment are not constant but vary depending on the actual demand during the order cycle. Usually used for stocks that are longer to sell from the store so to…arrow_forwardQuestion2: 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?arrow_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
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
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
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY