Operations Management
Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter 16, Problem 7P
Summary Introduction

To determine: The effect of change in ordering cost to pursue JIT strategy in company DM.

Introduction: An inventory control system which is used to control various activities in a supply chain is known as Kanban. It is a scheduling method used in lean and JIT manufacturing systems. JIT can be effectively achieved using Kanban.

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Gas sales across type: 80% of gas sales tend to be regular. 15% midgrade, 5% tend to be premium. $0.10 increase in price per gallon tends to decrease gallons sold by 1 to 3%. Jan-0.87, Feb-0.95, Mar-1.00, Apr-1.05, May-1.08, Jun1.15, Jul-1.13, Aug-1.07, Sep-1.02, Oct-0.94, Nov-0.89, Dec-0.85. You want the MAPE to be below 20%, if ypu can get it to or below 10% they'll throw in extra $10k. Wont get bonus if it is above 11% or 20%. It cannot be over 20%.
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Negotiators can gain several benefits from using the strategy of multiple equivalent simultaneous offers. By offering multiple options it reduces the chance of rejection. It also improves the chances of reaching reaching an agreement. By presenting multiple offers, it shows you are flexible.  agree with the post
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