Questions from Operations Management

Q: Johnson Corporation has the following information about a product that it carries

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 4...

Q: Suppose the supplier in problem 15 decides to offer a volume discount

Suppose the supplier in problem 15 decides to offer a volume discount. It now will sell the crystal figurines at $8 per unit for orders of 250 units or more. Answer items (a) through (e) based on this...

Q: Freeport Corporation finds that average demand for surfboards is 10 units per

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 da...

Q: Suppose you are a corporate buyer. One of your suppliers delivers

Suppose you are a corporate buyer. One of your suppliers delivers a particular part in 12 days on average, with a standard deviation of 3. The daily usage averages 20 units per day with a standard dev...

Q: Korner Hardware manager Emerson Jones is interested in determining how many nativity

Korner Hardware manager Emerson Jones is interested in determining how many nativity scenes to order for the 10-day holiday season. Past experience indicates that demand for these nativity scenes aver...

Q: The following table contains data about the inventory for five items at

The following table contains data about the inventory for five items at Jones Corporation. Complete the missing items in the table.

Q: The specification for the weight of a box of cereal is 16

The specification for the weight of a box of cereal is 16.2 oz ± .1 oz. The actual mean and standard deviation from a sample of 200 boxes is 16.1 oz. and 0.05 oz., respectively. What are the Cp and Cp...

Q: You have a one-time chance to purchase an item for

You have a one-time chance to purchase an item for $5. The item can be sold to customers for $30. After one day, the item has no salvage value because it becomes rot-ten at the end of the day. It will...

Q: Jasper’s Grocery places an order for Monster every three weeks. Once

Jasper’s Grocery places an order for Monster every three weeks. Once the order is placed, delivery to the store typically occurs in one week. Average demand is 100 cases per week and the standard devi...

Q: Dreyfus Company has a policy of counting on-hand inventory of

Dreyfus Company has a policy of counting on-hand inventory of one of its products every 45 days. When a replenishment order for the product is placed with the supplier, lead time is 8 days. Demand for...