Operations Management: Sustainability and Supply Chain Management, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134471815
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 16, Problem 9P
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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PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below:
Supply/Demand Info
Beginning
Jan
Feb
Mar
Apr
May
Jun
Forecast (demand)
53,800
53,400
51,000
63,800
49,200
59,000
Regular production
Overtime production
Subcontract production
Ending inventory
4,000
Hired employees
Fired employees
Total employees
190
Cost variables are as follows:
Cost Variables
Labor cost/hour
$16
Overtime cost/unit
$39
Subcontracting cost/unit
$35
Holding cost/unit/month
$14
Hiring cost/employee
$3,100
Firing cost/employee
$5,500
Here is some additional relevant (capacity) information:
Capacity Information
Total labor hours/SSD
4
Regular production units/employee/month
200…
Discuss how a human resource professional can better gain the confidence of senior management and, thereby, become a key participant/player in the organization’s future.
Chapter 16 Solutions
Operations Management: Sustainability and Supply Chain Management, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (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...
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