EBK OM
EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 18, Problem 3CQD
Summary Introduction

Case summary: Major Design Corporation is a 3,500-employee firm with annual revenues of more than $1 billion. The firm offers full services and is divided into five geographically based global sales divisions. MDC was selected by the city of Saratoga to design a new, 10-million-gallon-per-day surface water intake and transmission main. This project is touted as an “alternative” water supply project because the water source is not a historically used source. The project will increase the long-term sustainability of the city because it will diversify the city’s water supply portfolio and recycle water. The project will also minimize the need for additional withdrawals from historic water sources, which have become less productive and more highly regulated in the past 10 years, as the city’s population continues to grow. Other green benefits of the project include reduced environmental impacts on the historic water sources and a reduced carbon footprint, as the irrigation water requires less energy-intensive treatment than the city’s other drinkable water sources.

MR J manages about six engineering projects at any one time, so the project is to be analyzed for ways to complete it in 35 weeks. The results are to be analyzed.

Interpretation: The way of modeling the uncertainties in activity times is to be determined.

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Question content area Part 1 Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three​ categories: those that will be delivered daily from their supplier​ (Class A​ items), those that will be controlled using a continuous review system​ (B items), and those that will be held in a two bin system​ (C items).   The following table shows the annual dollar usage for a sample of eight SKUs. Fill in the blanks for annual dollar usage below. ​(Enter your responses rounded to the nearest whole​ number.)   Part 2 Rank the SKUs in descending order on the basis of their annual dollar usage and fill in the table with the ranked​ SKU's percentage of dollar usage. ​(Enter your responses rounded to two decimal​ places.)
Sam's Pet Hotel operates 51 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag. The following information is available about these bags: > Demand 70 bags/week > Order cost $58.00/order > Annual holding cost 30 percent of cost > Desired cycle-service level = 80 percent >Lead time 4 weeks (24 working days) > Standard deviation of weekly demand = 15 bags > Current on-hand inventory is 320 bags, with no open orders or backorders. a. Suppose that the weekly demand forecast of 70 bags is incorrect and actual demand averages only 45 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $ higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)
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