OPERATIONS+SUPPLY CHAIN...:CORE >INTL<
5th Edition
ISBN: 9781260547627
Author: Jacobs
Publisher: MCG
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Question
Chapter 20, Problem 24OQ
a)
Summary Introduction
To determine: The economic quantity to order.
b)
Summary Introduction
To determine: The reorder point.
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The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125
per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis:
Plan B: Vary the workforce to produce the prior month's demand. Demand was 1,300 units in June. The cost of hiring additional workers is $35 per unit produced. The cost of layoffs is $60 per unit
cut back. (Enter all responses as whole numbers.)
Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1300 in August requires a layoff (and related costs) of 0 units in August).
Hire
Month
1 July
Demand
1300
Production
(Units)
Layoff
(Units)
Ending
Inventory
Stockouts
(Units)
2 August
1150
3 September
1100
4 October
1600
5 November
1900
6 December
1900
The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100
per unit, inventory carrying costs of $20 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis:
Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontract additional
units at a $65 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers).
Ending
Month
Demand
Production Inventory
Subcontract
(Units)
1
July
1300
1,100
0
2
August
1150
1,100
0
3
September
1100
1,100
0
4 October
1600
1,100
0
5 November
1900
1,100
0
6 December
1200
1,100
0
Please help me expand upon my research even more in detail please. Need help added more to mine from the photos please. Not sure what more I can add.
Chapter 20 Solutions
OPERATIONS+SUPPLY CHAIN...:CORE >INTL<
Ch. 20 - Prob. 1DQCh. 20 - Distinguish between in-process inventory, safety...Ch. 20 - Discuss the nature of the costs that affect...Ch. 20 - Under which conditions would a plant manager elect...Ch. 20 - What two basic questions must be answered by an...Ch. 20 - Discuss the assumptions that are inherent in...Ch. 20 - Prob. 7DQCh. 20 -
Which type of inventory system would you use in...Ch. 20 - Prob. 9DQCh. 20 -
When cycle counting inventory, why do experts...
Ch. 20 - Prob. 1OQCh. 20 - Almost certainly you have seen vending machines...Ch. 20 - Prob. 3OQCh. 20 - Prob. 4OQCh. 20 - Prob. 5OQCh. 20 - Prob. 6OQCh. 20 - Wholemark is an Internet order business that sells...Ch. 20 - Prob. 8OQCh. 20 - Prob. 9OQCh. 20 - Prob. 10OQCh. 20 - Prob. 11OQCh. 20 - Ray’s Satellite Emporium wishes to determine the...Ch. 20 - Dunstreet’s Department Store would like to develop...Ch. 20 - Charlie’s Pizza orders all of its pepperoni,...Ch. 20 - Given the following information, formulate an...Ch. 20 - Lieutenant Commander Data is planning to make his...Ch. 20 - Jill’s Job Shop buys two parts (Tegdiws and...Ch. 20 - Demand for an item is 1,000 units per year. Each...Ch. 20 - The annual demand for a product is 15,600 units....Ch. 20 -
Daily demand for a product is 100 units, with a...Ch. 20 - Item X is a standard item stocked in a company’s...Ch. 20 - Annual demand for a product is 13,000 units;...Ch. 20 - Gentle Ben’s Bar and Restaurant uses 5,000 quart...Ch. 20 - Prob. 24OQCh. 20 - Daily demand for a product is 60 units with a...Ch. 20 - University Drug Pharmaceuticals orders its...Ch. 20 - Sarah’s Muffler Shop has one standard muffler that...Ch. 20 - Prob. 28OQCh. 20 - Prob. 29OQCh. 20 - It is your responsibility, as the new head of the...Ch. 20 - Prob. 31OQCh. 20 - A local service station is open 7 days per week,...Ch. 20 - Dave’s Auto Supply custom mixes paint for its...Ch. 20 - Prob. 34OQCh. 20 - Demand for a book at Amazon.com is 250 units per...Ch. 20 - Palin’s Muffler Shop has one standard muffler that...Ch. 20 - Daily demand for a certain product is normally...Ch. 20 - A particular raw material is available to a...Ch. 20 - CU, Incorporated (CUI), produces copper contacts...Ch. 20 - In the past, Taylor Industries has used a...Ch. 20 - Alpha Products, Inc., is having a problem trying...Ch. 20 - DAT, Inc., produces digital audiotapes to be used...Ch. 20 - Prob. 1AECh. 20 - Analytics Exercise: Inventory Management at...Ch. 20 - Analytics Exercise: Inventory Management at...Ch. 20 - Prob. 4AECh. 20 - Prob. 5AECh. 20 - Prob. 1PECh. 20 - Prob. 2PECh. 20 - Prob. 3PECh. 20 - Prob. 4PECh. 20 - Prob. 5PECh. 20 - Prob. 6PECh. 20 - Prob. 7PECh. 20 - Prob. 8PECh. 20 - Prob. 9PECh. 20 - Prob. 10PECh. 20 - Prob. 11PECh. 20 - Prob. 12PECh. 20 - Prob. 13PECh. 20 - Prob. 14PE
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