Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 18, Problem 2PA
Summary Introduction
To determine: Average flow rate of the projects in FCFS sequence.
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Westside Auto purchases a component used in the manufacture of automobile generators directly from the supplier. Westside's generator production operation, which is operated at a constant rate, will require
1,000 components per month throughout the year (12,000 units annually). Assume that the ordering costs are $24 per order, the unit cost is $2.20 per component, and annual holding costs are 15% of the
value of the inventory. Westside has 250 working days per year and a lead time of 5 days.
(a) What is the EOQ for this component? (Round your answer to the nearest integer.)
components
(b) What is the reorder point?
(c) What is the cycle time (in days)? (Round your answer to two decimal places.)
days
(d) What is the total annual holding cost (in $) associated with your recommended EOQ? (Round your answer to two decimal places.)
$
What is the total annual ordering cost (in $) associated with your recommended EOQ? (Round your answer to two decimal places.)
Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items customers want. She decides to experiment with inventory control methods, such as using a continuous review (fixed-order quantity) and/or periodic review (fixed-order period) system. The 28-ounce bottle of Super Algaecide (SA) is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor 160 miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the right quantity at the right time. She collected the following data:
Demand = 10 boxes per week
Store open = 48 weeks/year
Order cost = $36/order
Lead-time = 5 weeks
Item cost = $72/box
Std. deviation in weekly demand = 8
Inventory-holding cost = 25 percent year
Service level = 90 percent
What is the economic order quantity (EOQ) rounded to the next highest number? Round to the…
Overview and history of South Africa’s road, rail and freight transport network.
please include refere
Chapter 18 Solutions
Operations Management
Ch. 18 - Prob. 1CQCh. 18 - Prob. 2CQCh. 18 - Prob. 3CQCh. 18 - Prob. 4CQCh. 18 - Prob. 5CQCh. 18 - Prob. 6CQCh. 18 - With weighted shortest processing time, jobs are...Ch. 18 - Prob. 8CQCh. 18 - Prob. 9CQCh. 18 - Prob. 10CQ
Ch. 18 - Prob. 11CQCh. 18 - Prob. 12CQCh. 18 - Prob. 13CQCh. 18 - Prob. 14CQCh. 18 - Prob. 15CQCh. 18 - Prob. 16CQCh. 18 - Prob. 1PACh. 18 - Prob. 2PACh. 18 - Prob. 3PACh. 18 - Prob. 4PACh. 18 - Prob. 5PACh. 18 - Prob. 6PACh. 18 - Prob. 7PACh. 18 - Prob. 8PACh. 18 - Prob. 9PACh. 18 - Prob. 10PACh. 18 - Prob. 11PACh. 18 - Prob. 12PACh. 18 - Prob. 13PACh. 18 - Prob. 14PACh. 18 - Prob. 15PACh. 18 - Prob. 1CCh. 18 - Prob. 2CCh. 18 - Prob. 3CCh. 18 - Prob. 4C
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