Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134855424
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem 15P
In a Q system, the demand rate for strawberry ice cream is
- What is the standard deviation of demand during the 9-week lead time?
- What is the average demand during the 9-week lead time?
- What reorder point results in a cycle-service level of 99 percent?
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The Main Street Pharmacy fills prescriptions for a popular antibiotic medicine. The daily demand for the anti normally distributed with a mean of 200 pills and a standard deviation of 80 pills. The Vendor that supplies t to the pharmacy calls the pharmacist every 4 weeks to check the inventory of the antibiotic in the store. The receive an order of the antibiotic from the vendor is 4 days. Due to the importance of this drug, the pharmac adopted a 98% service level policy. The Pharmacy and Vendor operate 7 days a week, 52 weeks per year.
A) During one call, the pharmacist informed the vendor that 300 antibiotic pills remained in stock. What replenishment quantity should the pharmacist order?
The Main Street Pharmacy fills prescriptions for a popular antibiotic medicine. The daily demand for the anti normally distributed with a mean of 200 pills and a standard deviation of 80 pills. The Vendor that supplies t to the pharmacy calls the pharmacist every 4 weeks to check the inventory of the antibiotic in the store. The receive an order of the antibiotic from the vendor is 4 days. Due to the importance of this drug, the pharmac adopted a 98% service level policy. The Pharmacy and Vendor operate 7 days a week, 52 weeks per year.
A) If the pharmacy can accept one stock out of antibiotic every two years, what level of safety stock should the pharmacist maintain?
Chapter 9 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
Ch. 9 - What is the relationship between inventory and the...Ch. 9 - Suppose that a large discount retailer with a lot...Ch. 9 - Will organizations ever get to the point where...Ch. 9 - A part is produced in lots of 1,000 units. It is...Ch. 9 - Prince Electronics, a manufacturer of consumer...Ch. 9 - Terminator, Inc. manufactures a motorcycle part in...Ch. 9 - Ruby-Star Incorporated is considering two...Ch. 9 - Haley Photocopying purchases paper from an...Ch. 9 - Prob. 6PCh. 9 - Southern Markets, Inc. is considering the use of...
Ch. 9 - New Wave Shelving’s inventory manager would like...Ch. 9 - Yellow Press, Inc. buys paper in 1,500-pound rolls...Ch. 9 - Babble, Inc. buys 400 blank cassette tapes per...Ch. 9 - At Dot Com, a large retailer of popular books,...Ch. 9 - Leaky Pipe, a local retailer of plumbing supplies,...Ch. 9 - Sam’s Cat Hotel operates 52 weeks per year, 6...Ch. 9 - Consider again the kitty litter ordering policy...Ch. 9 - In a Q system, the demand rate for strawberry ice...Ch. 9 - Petromax Enterprises uses a continuous review...Ch. 9 - In a continuous review inventory system, the lead...Ch. 9 - In a two-bin inventory system, the demand for...Ch. 9 - You are in charge of inventory control of a highly...Ch. 9 - Your firm uses a continuous review system and...Ch. 9 - A company begins a review of ordering policies for...Ch. 9 - Prob. 22PCh. 9 - The Farmer’s Wife is a country store...Ch. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 26PCh. 9 - In a P system, the lead time for a box of...Ch. 9 - Suppose that Sam’s Cat Hotel in Problem 13 uses...Ch. 9 - Your firm uses a periodic review system for all...Ch. 9 - Using the same information as in Problem 21,...Ch. 9 - Wood County Hospital consumes 1,000 boxes of...Ch. 9 - A golf specialty wholesaler operates 50 weeks per...Ch. 9 - What is the EOQ and what is the lowest total cost?Ch. 9 - What is the annual cost of holding inventory at...Ch. 9 - Prob. 3AMECh. 9 - Prob. 4AMECh. 9 - Prob. 5AMECh. 9 - Prob. 6AMECh. 9 - Comment on the sensitivity of the EOQ model to...Ch. 9 - Consider the pressures for small versus large...Ch. 9 - Prob. 2VCCh. 9 - The Marker Maker© product recently experienced an...Ch. 9 - Put yourself in Sue McCaskey’s position and...Ch. 9 - By how much do your recommendations for these two...
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- A subcontracting firm Gamma Pharmaceuticals Ltd. located in Western India dealing with generic medicines operates 50 weeks per year. The following information is available regarding the major ingredient used for the medicine:Weekly Demand= 60 unitsStandard deviation of weekly demand = 9 unitsOrdering costs (Co) = Rs. 64/ orderHolding costs (Ch) = Rs.40/unit/yearCycle-service level = 90% (z-value = 1.28)Lead time = 2 weeksNumber of weeks per year = 50 weeksd) Using the fixed order quantity system to control inventory, calculate the EOQe) Compute the reorder point and state the order decision rulef) Compute the total variable cost of inventory.arrow_forwardIn a Q system, the demand rate for strawberry ice cream is normally distributed, with an average of 300 pints per week. The lead time is 9 weeks. The standard deviation of weekly demand is 15 pints. a. What is the standard deviation of demand during the 9-week lead time? b. What is the average demand during the 9-week lead time? c. What reorder point results in a cycle-service level of 99 percent?arrow_forwardFisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 97,200 units per year, an ordering cost of $4 per order, and carrying costs of $1.50 per unit. What is the economic ordering quantity? How many orders will be placed during the year? What will the average inventory be? What is the total cost of ordering and carrying inventory?arrow_forward
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