Operations and Supply Chain Management (Mcgraw-hill Education)
15th Edition
ISBN: 9781259666100
Author: F. Robert Jacobs, Richard B Chase
Publisher: McGraw-Hill Education
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Chapter 9, Problem 1.1CQ
Summary Introduction
Case summary:
The case deals with the exercise in translating the requirement of the customers into the requirements of process design at Company P, which is a pizza restaurant. Focusing on customers is the central theme of contemporary operations management. The settings of the firm were explained, as they are offering sit-down and take-out service. However, the customers felt that it would be good if they offer delivery service.
Two parts were explained in which Person X plays the role of the customer in the first part and he plays the role of the manager in the second part.
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The results of your four plans will provide an indicative EOQ value. State this value and discuss in a precise manner, why it is not the exact, true value.
Additional calculations in the form of plans E, F etc. may also assist your explanation of the EOQ and can be included
i). Complete the table assuming a Level production plan.
ii) Comment on your results and explain whether at this stage, you consider a Level plan is a suitable approach for this particular business. Your comment should include reference to a calculated ‘fill rate’.
In the following sawtooth inventory profile diagram, two inventory plans with different order quantities (Q) and different frequencies of delivery are shown; order quantity for Plan A = 200 units and Plan B = 50 units.
i). Total demand (D) is 350 units, the holding cost per unit (Ch) is equal to (£0.8) and the ordering cost per order (Co) is (£12.5). Calculate the total costs for each plan and state which one is more preferable along with the reason why.
ii). There is a stark difference in the composition of the total costs of Plans A and B. Explain this difference and why it occurs. Use the breakdown of costs for each plan to help illustrate your answer.
Chapter 9 Solutions
Operations and Supply Chain Management (Mcgraw-hill Education)
Ch. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQ
Ch. 9 - Prob. 11DQCh. 9 - Prob. 12DQCh. 9 - Prob. 13DQCh. 9 - Prob. 14DQCh. 9 - Prob. 15DQCh. 9 - Prob. 1OQCh. 9 - Prob. 2OQCh. 9 - Prob. 3OQCh. 9 - Prob. 4OQCh. 9 - Prob. 5OQCh. 9 - Prob. 6OQCh. 9 - Prob. 7OQCh. 9 - Prob. 8OQCh. 9 - Prob. 9OQCh. 9 - Prob. 10OQCh. 9 - Prob. 11OQCh. 9 - Prob. 1.1CQCh. 9 - Prob. 1.2CQCh. 9 - Prob. 1.3CQCh. 9 - Prob. 1.4CQCh. 9 - Prob. 1PECh. 9 - Prob. 2PECh. 9 - Prob. 3PECh. 9 - Prob. 4PECh. 9 - Prob. 5PECh. 9 - Prob. 6PECh. 9 - Prob. 7PECh. 9 - Prob. 8PECh. 9 - Prob. 9PECh. 9 - Prob. 10PE
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