What is the relationship between inventory and the nine competitive priorities we discussed in Chapter 1,“Using Operations to Create Value”? Suppose that two competing manufacturers, Company H and Company L, are similar except that Company H has much higher investments in raw materials, work-in-process, and finished goods inventory luau Company L. In which of the nine competitive priorities will Company H have an advantage?

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Answer 1

Textbook Question

Chapter 9, Problem 1DQ

What is the relationship between inventory and the nine competitive priorities we discussed in Chapter 1,“Using Operations to Create Value”? Suppose that two competing manufacturers, Company H and Company L, are similar except that Company H has much higher investments in raw materials, work-in-process, and finished goods inventory luau Company L. In which of the nine competitive priorities will Company H have an advantage?

Expert Solution & Answer

Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

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Scenario You have been given a task to create a demand forecast for the second year of sales of a premium outdoor grill. Accurate forecasts are important for many reasons, including for the company to ensure they have the materials they need to create the products required in a certain period of time. Your objective is to minimize the forecast error, which will be measured using the Mean Absolute Percentage Error (MAPE) with a goal of being below 25%. You have historical monthly sales data for the past year and access to software that provides forecasts based on five different forecasting techniques (Naïve, 3-Month Moving Average, Exponential Smoothing for .2, Exponential Smooth for .5, and Seasonal) to help determine the best forecast for that particular month. Based on the given data, you will identify trends and patterns to create a more accurate forecast. Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next…

Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next month. Remember to select the forecasting technique that produces the forecast error nearest to zero. For example: a. Naïve Forecast is 230 and the Forecast Error is -15. b. 3-Month Moving Forecast is 290 and the Forecast Error is -75. c. Exponential Smoothing Forecast for .2 is 308 and the Forecast Error is -93. d. Exponential Smoothing Forecast for .5 is 279 and the Forecast Error is -64. e. Seasonal Forecast is 297 and the Forecast Error is -82. The forecast for the next month would be 230 as the Naïve Forecast had the Forecast Error closest to zero with a -15. This forecasting technique was the best performing technique for that month. You do not need to do any external analysis-the forecast error for each strategy is already calculated for you in the tables below. Naïve Month Period Actual Demand Naïve Forecast Error 3- Month Moving Forecast 3- Month Moving…

Scenario You have been given a task to create a demand forecast for the second year of sales of a premium outdoor grill. Accurate forecasts are important for many reasons, including for the company to ensure they have the materials they need to create the products required in a certain period of time. Your objective is to minimize the forecast error, which will be measured using the Mean Absolute Percentage Error (MAPE) with a goal of being below 25%. You have historical monthly sales data for the past year and access to software that provides forecasts based on five different forecasting techniques (Naïve, 3-Month Moving Average, Exponential Smoothing for .2, Exponential Smooth for .5, and Seasonal) to help determine the best forecast for that particular month. Based on the given data, you will identify trends and patterns to create a more accurate forecast. Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next…

Answer 2

Textbook Question

Chapter 9, Problem 1DQ

What is the relationship between inventory and the nine competitive priorities we discussed in Chapter 1,“Using Operations to Create Value”? Suppose that two competing manufacturers, Company H and Company L, are similar except that Company H has much higher investments in raw materials, work-in-process, and finished goods inventory luau Company L. In which of the nine competitive priorities will Company H have an advantage?

Expert Solution & Answer

Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

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Answer 3

Textbook Question

Chapter 9, Problem 1DQ

What is the relationship between inventory and the nine competitive priorities we discussed in Chapter 1,“Using Operations to Create Value”? Suppose that two competing manufacturers, Company H and Company L, are similar except that Company H has much higher investments in raw materials, work-in-process, and finished goods inventory luau Company L. In which of the nine competitive priorities will Company H have an advantage?

Expert Solution & Answer

Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 9, Problem 1DQ

What is the relationship between inventory and the nine competitive priorities we discussed in Chapter 1,“Using Operations to Create Value”? Suppose that two competing manufacturers, Company H and Company L, are similar except that Company H has much higher investments in raw materials, work-in-process, and finished goods inventory luau Company L. In which of the nine competitive priorities will Company H have an advantage?

Expert Solution & Answer

Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

Answer 8

Expert Solution & Answer

Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Summary Introduction

Interpretation: The relationship between inventory and nine competitive priorities and its advantages to company H if it has invested more in raw materials, work-in-process & finished goods inventory than company L are to be discussed.

Concept Introduction: Stock of material used to fulfill customer demands or providing support to production of goods and giving services is referred as inventory. Activities preferred to gain competitive advantage among various competitors is competitive priorities.

Answer 12

Answer to Problem 1DQ

Inventory as of fulfilling customer’s demands tells that there is a relation between inventory & competitive priorities.

Higher inventory enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

Answer 13

Explanation of Solution

Given information: Description of relationship between inventory and nine competitive priorities is to be provided. Mention higher investment advantages in H Company of nine competitive priorities than Company L.

For avoiding bottleneck situations priorities of work must be done by business. Definition of inventory as of fulfilling customers’ demands tells that there is relation in between inventory & competitive priorities and their success also depends upon uninterrupted production flow.

Inventory above average is called higher inventory and enjoys competitive priority than lower inventory as it can fulfill customers demand more elegantly.

The company having lower inventory cannot fulfill customers demand as they do not have sufficient inventory.

Answer 14

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