Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 3.1, Problem 6P
Summary Introduction
To Explain:The compromises between using financial terms (dollars) and sales volumes in cumulative sales and operations planning.
Introduction:As it is impossible to keep a track of individual units of stock in planning sales and operations, it is usually given in terms of batches or families. Companies often use monetary values (dollars) or sales volume (quantity) as the unit of such aggregation.
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What are the trade-offs between using revenue dollars versus sales quantities asthe units in the aggregate S&OP plan.
Dara Jones, operations manager of Arrow Distributing Corp., likes to track inventory
by using weeks of supply as well as by inventory turnover.
Arrow Distributing Corp.
Net Revenue
$16,680
Cost of sales
$13,980
Inventory
$1,020
Total assets
$8,360
a) What is its weeks of supply?
decimal places).
weeks (round your response to two
b) What percentage of Arrow's assets are committed to inventory?
response as a percentage rounded to two decimal places).
c) What is Arrow's inventory turnover?
decimal places).
% (enter your
times per year (round your response to two
d) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's
supply chain performance relative to the manufacturer's, as measured by
inventory turnover, is
better
worse
the same
10. Mention and describe what each of the 4 types of approaches to demand analysis discussed in class consists of.
Chapter 3 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 3.1 - Prob. 1PCh. 3.1 - Prob. 2PCh. 3.1 - Prob. 3PCh. 3.1 - Prob. 4PCh. 3.1 - Prob. 5PCh. 3.1 - Prob. 6PCh. 3.2 - Prob. 7PCh. 3.2 - Prob. 8PCh. 3.2 - Prob. 9PCh. 3.2 - Prob. 10P
Ch. 3.2 - Prob. 11PCh. 3.2 - Prob. 12PCh. 3.3 - Prob. 13PCh. 3.3 - Prob. 14PCh. 3.3 - Prob. 15PCh. 3.3 - Prob. 16PCh. 3.4 - Prob. 17PCh. 3.4 - Prob. 18PCh. 3.4 - Prob. 19PCh. 3.4 - Prob. 20PCh. 3.4 - Prob. 21PCh. 3.4 - Prob. 22PCh. 3.4 - Prob. 23PCh. 3.5 - Prob. 26PCh. 3.5 - Prob. 27PCh. 3.6 - Prob. 29PCh. 3.6 - Prob. 30PCh. 3 - Prob. 31APCh. 3 - Prob. 32APCh. 3 - Prob. 33APCh. 3 - Prob. 34APCh. 3 - Prob. 35APCh. 3 - Prob. 36AP
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