OPERATION MANAGEMENT
2nd Edition
ISBN: 9781260242423
Author: CACHON
Publisher: MCG
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Textbook Question
Chapter 8, Problem 20CQ
A company makes two models, A and B. Which of the following production
- a. ABABABABAB
- b. AAAAABBBBB
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Demand is essential for selling a product and it depends on ability to buy.
Select one:
a. False.
b. True.
A company makes two models, A and B. Which of the following production schedulesis more level?a. ABABABABABb. AAAAABBBBB
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Taylor Supply is a wholesaler of office supplies and equipment. Taylor purchases cartons of staples from Barker Manufacturing. Barker offers a price of $7 per carton of staples. Taylor incurs a fixed charge of $90 per order to cover order equipment and clerical costs. Each order takes 3 days to arrive . Taylor has projected sales to be 603 boxes per day. Taylor's accounting department has determined the holding costs relevant for inventory decisions are 28% of unit cost. Assume Q=3000. What is the demand for staples during lead time?
1) Assume Q=3000. What is the demand for staples during lead time?
2) Assume Q=3000. What z value is associated with a 90% confidence level?
3) Assume Q=3000. If Taylor wants a 90% service level, and the standard deviation in daily demand is 250, what is the appropriate reorder point?
4) Assume Q=3000. If Taylor wants to improve their service level to 95%, and…
Chapter 8 Solutions
OPERATION MANAGEMENT
Ch. 8 - Prob. 1CQCh. 8 - Prob. 2CQCh. 8 - Prob. 3CQCh. 8 - Prob. 4CQCh. 8 - Prob. 5CQCh. 8 - Prob. 6CQCh. 8 - Prob. 7CQCh. 8 - Prob. 8CQCh. 8 - What are the two pillars of the Toyota Production...Ch. 8 - Prob. 10CQ
Ch. 8 - Prob. 11CQCh. 8 - Prob. 12CQCh. 8 - Prob. 13CQCh. 8 - Prob. 14CQCh. 8 - Prob. 15CQCh. 8 - Prob. 16CQCh. 8 - Prob. 17CQCh. 8 - Prob. 18CQCh. 8 - Prob. 19CQCh. 8 - A company makes two models, A and B. Which of the...Ch. 8 - Prob. 21CQCh. 8 - Prob. 22CQCh. 8 - Prob. 23CQCh. 8 - Prob. 24CQCh. 8 - Prob. 25CQCh. 8 - Prob. 26CQCh. 8 - Prob. 1PACh. 8 - Prob. 2PACh. 8 - Prob. 3PACh. 8 - Prob. 4PACh. 8 - Prob. 5PACh. 8 - Prob. 6PACh. 8 - Prob. 7PACh. 8 - Prob. 8PACh. 8 - Prob. 9PACh. 8 - Prob. 10PA
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- Match each inventory term to its best description. Non-Inventory Product A. Helps determine a product’s purchase price. Inventory Valuation B. May be needed for broken or spoiled products. Inventory Item C. An item specially ordered for a customer. Inventory Adjustment D. A product stocked, tracked, and sold to customers.arrow_forwardAll of the following statements concerning shortage costs are true Except: Shortage costs include loss of goodwill, loss of a sale, loss of a customer, loss of profits, and late penalties Shortage costs are difficult or impossible to measure with any accuracy High shortage costs favor small inventories It is the cost of having no items in the inventory when it is needed by customersarrow_forward________ indicates a warehouse receives large cargo volumes from shippers, and divides that cargo among multiple consignees. Group of answer choices Breakbulk Customization Final assemblynone of these answersarrow_forward
- The level of sales at the break-even point is calculated: a. Fixed costs/Unit contribution margin in % b. Variable costs/Fixed costs c. Sales/Gross margin in %arrow_forwardThe various quantities of a commodity that a consumer would purchase at different prices of another related commodity is known as __________. a. Complementary demand b. Derived demand c. Price demand d. Cross demandarrow_forwardPlease do not give solution in image format thanku Flag Sport Obermeyer (SO) is a manufacturer of ski apparel. A ski jacket is sourced at a cost of $80 and sold for $125. One order is placed at the beginning of the season. Currently, SO disposes of any unsold jackets at the end of the season to outlet stores at $70. It costs $10 to hold a jacket in inventory for the entire season and then ship it to an outlet store. Demand for ski jackets has been forecast to be normally distributed, with a mean of 4,000 and standard deviation of 1,750. What is the expected overstock at the end of the season that will be sent to outlet stores?arrow_forward
- The negative relationship between prices and quantity demanded happens because of ______ Group of answer choices consumers acting rationally supply costs market equilibrium the downward sloping demand curvearrow_forwardA. You are thinking about opening an oil change shop. Your fixed costs will be $13,000 per month. You will charge customers $28 for a lube-oil filter. The cost of materials is in addition to your fixed costs and is estimated at $8 per customer. How many customers must you have each month in order to break even? Hint: "Break Even" means revenues equal expenses, so we could say "fixed costs+variable costs=revenues" B. If your shop is open an average of 25 days each month., how many customers do you need each day to break even? Answer for a: 650 customers Answer for b: 26 customers per day please help me set up the equation needed to solve and get the correct answer.arrow_forwardCompute EMV and EVPI. (Question is in the screenshot)arrow_forward
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