Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab Operations Management
12th Edition
ISBN: 9780134890357
Author: Lee J. Krajewski, Manoj K. Malhotra
Publisher: Pearson Global Edition
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Textbook Question
Chapter 4, Problem 15P
MKM International is seeking to purchase a new CNC machine in order to reduce costs. Two alternative machines are in consideration. Machine 1 costs $500,000 but yields a 15 percent savings over the current machine used. Machine 2 costs $900,000 but yields a 25 percent savings over the current machine used. In order to meet demand, the following
- Based on the
NPV of the cash flows for these five years, which machine should MKM International Purchase? Assume a discount rate of 12 percent. - If MKM International lowered its required discount rate to 8 percent, what machine would it purchase?
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Dyson, a high-tech home appliance maker, has cut ties with Malaysian supplier ATA IMS Bhd following an audit of the company's labour practices and allegations by a whistleblower. ATA is already under US investigation over forced labour allegations. Dyson has terminated its contracts and is in talks with its customer over the audit findings. ATA, which produces parts for Dyson's vacuum cleaners and air purifiers, tumbled 30% to its lowest since April 2020. The termination is a significant blow for Malaysia, a major electronics manufacturing hub, which has faced scrutiny this year over claims of abusive working and living conditions. Dyson terminated the relationship with six months' contractual notice, hoping it would give ATA the impetus to improve and enable an orderly withdrawal in the interests of the workers they employ. Former ATA worker Dhan Kumar Limbu was beaten by police in Malaysia after sharing information about conditions at the factory with activists. ATA denied all…
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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.)
Chapter 4 Solutions
Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab Operations Management
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - The Dahlia Medical Center has 30 labor rooms, 15...Ch. 4 - A process currently services an average of 50...Ch. 4 - An airline company must plan its fleet capacity...Ch. 4 - Food Goblin Supermarkets use both cashiers and...Ch. 4 - Returning to Problem 4, under both assumption of...Ch. 4 - Purple Swift manufactures birdhouses in lots of...Ch. 4 - Macon Controls produces three different types of...Ch. 4 - Up, Up, and Away is a producer of kites and wind...
Ch. 4 - Tuff-Rider, Inc. manufactures touring bikes and...Ch. 4 - Arabelle is considering expanding the floor area...Ch. 4 - The Astro World amusement park has the opportunity...Ch. 4 - Kim Epson operates a full-service car wash, which...Ch. 4 - MKM International is seeking to purchase a new CNC...Ch. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Dawson Electronics is a manufacturer of high-tech...Ch. 4 - A manager is trying to decide whether to buy one...Ch. 4 - Acme Steel Fabricators experienced booming...Ch. 4 - Referring to Problem 7, the operations manager at...Ch. 4 - Darren Mack owns the Gas n’ Go convenience store...Ch. 4 - Prob. 25PCh. 4 - Prob. 1VCCh. 4 - Prob. 2VCCh. 4 - How does Southwest Airlines know they are...Ch. 4 - Prob. 4VCCh. 4 - Prob. 1CCh. 4 - Prob. 2CCh. 4 - Prob. 3C
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