Chapter 7: Problems 9, 11, 12, 14, 17 & 26. Chapter 8: Discussion Questions 3, 12 & 15.
Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information:
Average demand= 20 units per day
Average lead time= 30 days
Item unit cost = $50 for orders of less than 200 units
Item unit cost = $48 for orders of 200 units or more
Ordering cost = $25 Inventory carrying cost= 25%
The business year is 250 days
The basic question:
How many chairs should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time. There are many associated questions, such as what will the firm’s average inventory be under each alternative? What will be the breakdown of costs for each alternative?
A company experiences annual demand of 1,000 units for an item that it purchases. The rate of demand per day is very stable, with very little variation from day to day. The item costs $50 when purchased in quantities less than 100 and $48 for 100 items or more. Ordering costs are $40 and the carrying cost is 25 percent. How much should the company buy each time an order is placed?
Meyer Stores carries a specialty line of flavored syrups. On average, Meyer sells 30 bottles per week of its popular raspberry syrup. Meyer’s cost is $8 per bottle. Meyer has determined its order cost to be $50 and inventory carrying cost is 20 percent. Meyer is open for business 52 weeks per year.
Johnson Corporation has the following information about a product that it carries in stock:
Average demand= 40 units per day
Average lead time= 15 days
Item unit cost = $55 for orders of less than 400 units
Item unit cost = $50 for orders of 400 units or more
Ordering cost = $30
Inventory carrying cost = 20%
The business year is 300 days
Standard deviation of demand = 2.5 units
Standard deviation of lead time = 1.5 days
Desired service level= 97.5%
Freeport Corporation finds that average demand for surfboards is 10 units per day, with a standard deviation of 3 units. Lead time from the supplier averages 12 days, with a standard deviation of 2 days. The item costs $50 and the inventory carrying cost is 30 percent.
You are the buyer for your university bookstore. One of the textbooks has a cost to you of $100 and you sell it to students for $140. Any copies of the book that you order and do not sell to students can be returned to the publisher for an average $80 credit. (Sometimes you can get full credit, but sometimes a new edition is published so you get no credit.) In one particular course, demand has averaged 400 books each semester, with a standard deviation of 40. What is your target service level? What is your target order quantity for the course?
Discussion Question 3:
Why is achievement of the following goals critical to the success of lean systems?
Give an example of how each area contributes to the success of a lean system.
Discussion Question 12:
Can lean systems enhance a worker’s quality of life? Discuss the pros and cons from an employee’s point of view.
Discussion Question 15:
Imagine that your customer base is located in North America and your suppliers are located in China. Is it possible to implement lean supply chain management under such conditions? What are the challenges now facing the firm?
We value our customers and so we ensure that what we do is 100% original..
At Custom Writing, we believe in exemplary services that are fully geared toward customer satisfaction. That is why we don’t shy away from giving you the following guarantees;
Trusting us with your work is the best decision you have made, our pleasure lies in seeing you satisfied at 100%. If in the rear chance it happens that you are not satisfied, then know that we will equally not be satisfied. But worry not, our 30 days- Money back guarantee is all you need and that is what we promise you..Read more
We utilize profoundly equipped and gifted writers who produce unique papers liberated from any form of plagiarism. To guarantee this, we run all papers finished by our scholars through a Plagiarism checker to ensure uniqueness and originality. In any case, on the off chance that you have vulnerabilities about the originality or falsification of any paper we have finished and conveyed to you, please get in touch with us straight away. We will quickly investigate, and if the paper is seen as counterfeited, we will take suitable actions including but not limited to, revising the paper for free and in extreme cases we will activate the money back guarantee.Read more
We have an obligation deliver great and specially composed assignments. Our revision strategy endeavors to ensure total client satisfaction, comfort, and a genuine feelings of serenity. We make minor updates and corrections to the underlying request as part of our continuous assistance. However, revisions should just incorporate changes and alterations that were not effectively met, in the underlying request and that are inside the rules as per the current request structure..Read more
Our client's Data is an Integral part of our business but clearly, we are not in the business of offering our clients' very own data to others. We realize that you care how your online data is utilized and shared, we equally value your trust that we will do so cautiously and sensibly. We Promise to ensure the security of your own data during transmission by utilizing encryption conventions and programming. Likewise assist us with securing your information by not sharing your passwords and usernames.Read more
In submitting a request with us, you consent to the services we give. We will strive to take the necessary steps to convey a far reaching paper according to your prerequisites. Equally we depend on your cooperation to guarantee that we convey on this order.Read more