Questions from Operations Management

Q: You manage inventory for your company and use a continuous review inventory

You manage inventory for your company and use a continuous review inventory sys-tem to control reordering items for stock. Your company is open for business 300 days per year. One of your most importa...

Q: Suppose in problem 23, you were able to reduce your order

Suppose in problem 23, you were able to reduce your order cost to $10. What is the impact of this change on the other variables?

Q: After you reduce your order cost, as described in problem 24

After you reduce your order cost, as described in problem 24, the supplier in problem 23 changes its pricing policy to a standard $4.75 per unit, regardless of the order quantity. What is the impact o...

Q: You are the buyer for your university bookstore. One of the

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...

Q: Suppose Jones Corporation in the above problem determined that its annual inventory

Suppose Jones Corporation in the above problem determined that its annual inventory carrying cost = 18 percent. The item unit cost was as follows: Item 1 = $25.00 Item 2 = $60.00 Item 3 = $5.00 Item 4...

Q: Again, using the data for Jones Corporation in problems 2 and

Again, using the data for Jones Corporation in problems 2 and 3, suppose Jones believes that in the upcoming year, the rate of sales expected for each of the five items is as follows: Item 1 = 4,000 u...

Q: Complete an ABC analysis of the five items that Jones Corporation carries

Complete an ABC analysis of the five items that Jones Corporation carries in inventory.

Q: Suppose management of Foods Galore (in solved problem 3) found

Suppose management of Foods Galore (in solved problem 3) found that it had drastically underestimated its annual inventory carrying cost. Rather than the 10 percent carrying cost assumed in the solved...

Q: Suppose Thomas Toys Ltd. (in solved problem 4) decides

Suppose Thomas Toys Ltd. (in solved problem 4) decides to reduce the review period from 21 days to 10 days. Rework the problem assuming everything else remains the same.

Q: Suppose Johnson Plastics (in solved problem 5) reduces setup cost

Suppose Johnson Plastics (in solved problem 5) reduces setup cost to $20. Rework the problem.