All Related Questions of Safety Stock

Q: Saché, Inc., expects to sell 700 of its designer suits

Saché, Inc., expects to sell 700 of its designer suits every week. The store is open seven days a week and expects to sell the same number of suits every day. The company has an EOQ of 500 suits and a...

Q: Aztec Company expects daily usage of 500 pounds of material Inca,

Aztec Company expects daily usage of 500 pounds of material Inca, an anticipated lead time of seven days, and a desired safety stock of 2,500 pounds. a. Determine the order point. b. Determine the num...

Q: Marino Company predicts that it will use 25,000 units of

Marino Company predicts that it will use 25,000 units of material during the year. The expected daily usage is 200 units, and there is an expected lead-time of five days and a desired safety stock of...

Q: Prepare a schedule like that shown in Figure 11.12 for

Prepare a schedule like that shown in Figure 11.12 for the following situation: The forecast is 80 units for each of the first two periods and 60 units for each of the next three periods. The starting...

Q: Under what circumstances would the amount of safety stock held be large

Under what circumstances would the amount of safety stock held be large? Small? Zero?

Q: What is meant by the term service level? Generally speaking,

What is meant by the term service level? Generally speaking, how is service level related to the amount of safety stock held?

Q: A newspaper publisher uses roughly 800 feet of baling wire each day

A newspaper publisher uses roughly 800 feet of baling wire each day to secure bundles of newspapers while they are being distributed to carriers. The paper is published Monday through Saturday. Lead t...

Q: Given this information: Expected demand during lead time =

Given this information: Expected demand during lead time = 300 units Standard deviation of lead time demand = 30 units Determine each of the following, assuming that lead time demand is distribute...

Q: . Given this information: Lead-time demand =

. Given this information: Lead-time demand = 600 pounds Standard deviation of lead time demand = 52 pounds (Assume normality.) Acceptable stockout risk during lead time = 4 percent a. What amount o...

Q: The injection molding department of a company uses an average of 30

The injection molding department of a company uses an average of 30 gallons of special lubricant a day. The supply of the lubricant is replenished when the amount on hand is 170 gallons. It takes four...

Q: A service station uses 1,200 cases of oil a year

A service station uses 1,200 cases of oil a year. Ordering cost is $40, and annual carrying cost is $3 per case. The station owner has specified a service level of 99 percent. a. What is the optimal o...

Q: The daily demand of a product can be specified by a normal

The daily demand of a product can be specified by a normal distribution. The average daily demand is 250 units with a standard deviation of 40 units. The order lead time for this product is also norma...

Q: Eakins Enterprises makes model boats, and it is switching to a

Eakins Enterprises makes model boats, and it is switching to a lean manufacturing process. At one assembly area, Eakins is using one part container that holds 250 parts, and it wants the output to be...

Q: Paris Store stocks a part that has a normal distribution demand pattern

Paris Store stocks a part that has a normal distribution demand pattern during the order lead time period. Its average demand during the order lead time is 650 units and the standard deviation of dema...

Q: Lindner Congress Bookstore sells a unique calculator to college students. The

Lindner Congress Bookstore sells a unique calculator to college students. The demand for this calculator has a normal distribution with an average daily demand of 15 units and a standard deviation of...

Q: The daily demand of a product is very stable at 250 units

The daily demand of a product is very stable at 250 units per day. However, the order lead time varies and can be specified by a normal distribution with a mean lead time of 12 days and standard devia...

Q: Connick Company sells its product for $22 per unit. Its

Connick Company sells its product for $22 per unit. Its actual and projected sales follow. All sales are on credit. Recent experience shows that 40% of credit sales is collected in the month of the...

Q: Aztec Company sells its product for $180 per unit. Its

Aztec Company sells its product for $180 per unit. Its actual and projected sales follow. All sales are on credit. Recent experience shows that 20% of credit sales is collected in the month of the s...

Q: Consider the information from Problem 7. Determine how the number of

Consider the information from Problem 7. Determine how the number of kanbans and the inventory level will be affected if: a) The container size is decreased to 15 units. b) The container size is incre...

Q: A production cell at Canderberry Candle facility operates 5 hours per day

A production cell at Canderberry Candle facility operates 5 hours per day and uses a pull method to supply wicks to the assembly line. The wicks are used at a rate of 300 per day. Each container holds...

Q: A dye cell at the Acme Clothing Factory uses 500 pounds of

A dye cell at the Acme Clothing Factory uses 500 pounds of dye each day. The dye is moved in vats at a rate of approximately one per hour. Each vat holds 10 pounds of dye. Management has set safety st...

Q: Anna works on an assembly line where it takes her 30 minutes

Anna works on an assembly line where it takes her 30 minutes to produce 20 units of a product needed to fill a container. It takes her an additional 5 minutes to transport the container to Josh, who w...

Q: Tax Preparers, Inc. works 250 days per year. The

Tax Preparers, Inc. works 250 days per year. The company uses adding machine tape at a rate of eight rolls per day. Usage is believed to be normally distributed with a standard deviation of three roll...

Q: Your new company has decided to use a periodic review system.

Your new company has decided to use a periodic review system. You have learned that average weekly demand is 48 units per week with a standard deviation of 8 units. You believe that your cycle-service...

Q: The Mowerson Division of Brown Instruments manufactures testing equipment for the automobile

The Mowerson Division of Brown Instruments manufactures testing equipment for the automobile industry. Mowerson’s equipment is installed in several places along an automobile assembl...

Q: You are the operations manager for a manufacturing plant that produces pudding

You are the operations manager for a manufacturing plant that produces pudding food products. One of your important responsibilities is to prepare an aggregate plan for the plant. This plan is an impo...

Q: Develop a production schedule to produce the exact production requirements by varying

Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem. Use the example in the chapter as a guide (Plan 1). The monthly fore...

Q: A bottling plant fills 2,400 bottles every two hours.

A bottling plant fills 2,400 bottles every two hours. The lead time is 40 minutes and a container accommodates 120 bottles. The safety stock is 10 percent of expected demand. How many kanban cards are...

Q: Refer to Example 14.1 as the basis for this problem

Refer to Example 14.1 as the basis for this problem. Meritor hires a team of consultants. The consultants suggest a partial robotic automation, as well as an increase in safety stock to 12.5 percent....

Q: Meritor is so pleased with the outcome from previous suggestions that the

Meritor is so pleased with the outcome from previous suggestions that the consultants are invited back for more work. The consultants now suggest a more complete robotic automation of the making of mu...

Q: Distinguish between in-process inventory, safety stock inventory, and

Distinguish between in-process inventory, safety stock inventory, and seasonal inventory.

Q: Annual demand for a product is 13,000 units; weekly

Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of 40 units. The cost of placing an order is $100, and the time from ordering to receipt is four weeks...

Q: Should safety stock be necessary in an MRP system with dependent demand

Should safety stock be necessary in an MRP system with dependent demand? If so, why? If not, why do firms carry it anyway?

Q: Jill’s Job Shop buys two parts (Tegdiws and Widgets) for

Jill’s Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws a...

Q: The annual demand for a product is 15,600 units.

The annual demand for a product is 15,600 units. The weekly demand is 300 units with a standard deviation of 90 units. The cost to place an order is $31.20, and the time from ordering to receipt is fo...

Q: The annual demand for a product is 15,600 units.

The annual demand for a product is 15,600 units. The weekly demand is 300 units with a standard deviation of 90 units. The cost to place an order is $31.20, and the time from ordering to receipt is fo...

Q: How much safety stock should be carried in an MRP system?

How much safety stock should be carried in an MRP system? What is the role of safety stock in MRP systems? Where should safety stock be carried?

Q: The Co-op in problem 6 has discovered that it should

The Co-op in problem 6 has discovered that it should establish a safety stock for its sweatshirts. It wants to use a reorder point system with a two-week lead time. The demand over a two-week interval...

Q: The Suregrip Tire Company carries a certain type of tire with the

The Suregrip Tire Company carries a certain type of tire with the following characteristics: Average annual sales = 600 tires Ordering cost = $40 per order Carrying cost = 25 percent per year Item cos...

Q: Klump Trekkers, Inc., manufactures engines that are used in recreational

Klump Trekkers, Inc., manufactures engines that are used in recreational equipment, such as motorcycles and personal watercraft. The company currently assembles the camshafts for these motors in its a...

Q: The Gentry Garden Center sells 90,000 bags of lawn fertilizer

The Gentry Garden Center sells 90,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 1,000 bags. Each bag costs the firm $1.50, inventory carrying cost is 2...

Q: Andria Mullins, financial manager of Webster Electronics, has been asked

Andria Mullins, financial manager of Webster Electronics, has been asked by the firm’s CEO, Fred Weygandt, to evaluate the company’s inventory control techniques and to lead a discussion of the subjec...

Q: Party-Hearty Company makes a variety of holiday party packs.

Party-Hearty Company makes a variety of holiday party packs. One party pack is for a bachelorette party. It includes a tiara, a pink feathered boa, and a t-shirt emblazoned with ‘‘I’m the Bride.’’ Pin...

Q: Explain how safety stock is used to deal with demand uncertainty.

Explain how safety stock is used to deal with demand uncertainty.

Q: Jill’s Custom Bags manufacturers and sells 12,000 customer designer bags

Jill’s Custom Bags manufacturers and sells 12,000 customer designer bags per year, each requiring three yards of a specially manufactured fabric. These bags are sold evenly throughout the year. The ma...

Q: After analyzing the costs of various options for obtaining brackets, Ross

After analyzing the costs of various options for obtaining brackets, Ross White (see Problems 6-27 through 6-29) recognizes that although he knows that the lead time is 2 days and the demand per day a...

Q: Linda Lechner has just been severely chastised for her inventory policy.

Linda Lechner has just been severely chastised for her inventory policy. (See Problem 6-39.) Sue Surrowski, her boss, believes that the service level should be either 95% or 98%. Compute the safety st...

Q: The Hardware Warehouse is evaluating the safety stock policy for all its

The Hardware Warehouse is evaluating the safety stock policy for all its items, as identified by the SKU code. For SKU M4389, the company always orders 80 units each time an order is placed. The daily...

Q: For SKU A3510 at the Hardware Warehouse, the order quantity has

For SKU A3510 at the Hardware Warehouse, the order quantity has been set at 150 units each time an order is placed. The daily demand is normally distributed, with a mean of 12 units and a standard dev...

Q: H & K Electronic Warehouse sells a 12-pack of AAA

H & K Electronic Warehouse sells a 12-pack of AAA batteries, and this is a very popular item. Demand for this is normally distributed, with an average of 50 packs per day and a standard deviation of 1...

Q: Linda Lechner is in charge of maintaining hospital supplies at General Hospital

Linda Lechner is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60. Furthermore, the standard deviation for BX-5 w...

Q: Diane Delbert operates a health food bakery that uses a special type

Diane Delbert operates a health food bakery that uses a special type of ground flour in one of its high-margin products. The bakery operates 365 days a year. Delbert finds that she seems to order ei...

Q: Chadwick Shoe Co. produces and sells an excellent-quality walking

Chadwick Shoe Co. produces and sells an excellent-quality walking shoe. After production, the shoes are distributed to 20 warehouses around the country. Each warehouse services approximately 100 store...

Q: Phillips Corporation is a major manufacturer of food processors. It purchases

Phillips Corporation is a major manufacturer of food processors. It purchases motors from Viking Corporation. Annual demand is 52,000 motors per year or 1,000 motors per week. The ordering cost is $36...

Q: Saché, Inc., expects to sell 700 of its designer suits

Saché, Inc., expects to sell 700 of its designer suits every week. The store is open seven days a week and expects to sell the same number of suits every day. The company has an EOQ of 500 suits and a...

Q: Aztec Company sells its product for $180 per unit. Its

Aztec Company sells its product for $180 per unit. Its actual and budgeted sales follow. All sales are on credit. Recent experience shows that 20% of credit sales is collected in the month of the sa...

Q: Connick Company sells its product for $22 per unit. Its

Connick Company sells its product for $22 per unit. Its actual and budgeted sales follow. All sales are on credit. Recent experience shows that 40% of credit sales is collected in the month of the s...

Q: For Isa Distributors in Problem 17, we were given Q*

For Isa Distributors in Problem 17, we were given Q* = 25, D = 200, Ch = €5 and a normal lead-time demand distribution with / a. What is Isa’s reorder point if the firm is willing to t...

Q: Knutson Products Inc. is involved in the production of airplane parts

Knutson Products Inc. is involved in the production of airplane parts and has the following inventory, carrying, and storage costs: 1. Orders must be placed in round lots of 100 units. 2. Annual unit...

Q: Saché, Inc., expects to sell 700 of its designer suits

Saché, Inc., expects to sell 700 of its designer suits every week. The store is open seven days a week and expects to sell the same number of suits every day. The company has an EOQ of 500 suits and a...

Q: A number of terms are listed below: /

A number of terms are listed below: Required: Select the terms from the above list to complete the following sentences. Supply-chain strategy decisions determine __________________ activities. Manag...

Q: Clarkson Shoe Co. produces and sells excellent quality walking shoes.

Clarkson Shoe Co. produces and sells excellent quality walking shoes. After production, the shoes are distributed to 20 warehouses around the country. Each warehouse services approximately 100 stores...

Q: Longhorn Traders is one of the largest RV dealers in Austin,

Longhorn Traders is one of the largest RV dealers in Austin, Texas, and sells about 2,800 recreational vehicles a year. The cost of placing an order with Longhorn’s supplier is $800, and the inventory...

Q: Jackson Electrical, one of the largest generator dealers in Phoenix,

Jackson Electrical, one of the largest generator dealers in Phoenix, sells about 2,000 generators a year. The cost of placing an order with its supplier is $750, and the inventory carrying costs are $...

Q: FRA Manufacturing Company purchases 9,000 units of Part 3BX each

FRA Manufacturing Company purchases 9,000 units of Part 3BX each year. The cost of placing an order is $5 and the cost of carrying one part in inventory for a year is $1. What is the Economic Order Qu...

Q: The Creative Products Corporation produces its products two months in advance of

The Creative Products Corporation produces its products two months in advance of anticipated sales and ships to warehouse centers the month before sale. The inventory safety stock is 15% of the antici...

Q: National Beverage Company produces its products two months in advance of

National Beverage Company produces its products two months in advance of anticipated sales and ships to warehouse centers the month before sale. The inventory safety stock is 10% of the anticipated m...

Q: California Cement Co. produces its products two months in advance of

California Cement Co. produces its products two months in advance of anticipated sales and ships to warehouse centers the month before sale. The inventory safety stock is 20% of the anticipated month’...

Q: Define the following terms: a. Stockout b.

Define the following terms: a. Stockout b. Deterministic inventory control models c. Probabilistic inventory control models d. Safety stock e. Lead time

Q: Books, etc., a nationwide chain of bookstores, anticipates that

Books, etc., a nationwide chain of bookstores, anticipates that annual demand for the paperback version of a best-selling novel will be 150,000 copies. The books cost the firm $2 each. Books, etc. has...

Q: Chadwick Shoe Co. produces and sells an excellent quality walking shoe

Chadwick Shoe Co. produces and sells an excellent quality walking shoe. After production, the shoes are distributed to 20 warehouses around the country. Each warehouse services approximately 100 store...

Q: An automotive parts distributor wants to standardize its safety stock level for

An automotive parts distributor wants to standardize its safety stock level for two parts, A and B. (“Safety stock” is the excess inventory carried above the expected demand level to provide protectio...

Q: The following are some quotes provided by a number of managers at

The following are some quotes provided by a number of managers at Hawkeye Machining Company regarding the company’s planned move toward a lean manufacturing system: Director of Sales: I’m afraid we’ll...

Q: A company is reviewing the purchasing policy for one of its raw

A company is reviewing the purchasing policy for one of its raw materials as a result of a reduction in production requirement. The material, which is used evenly throughout the year, is used in only...

Q: A company is planning to purchase 90 800 units of a particular

A company is planning to purchase 90 800 units of a particular item in the year ahead. The item is purchased in boxes, each containing ten units of the item, at a price of £200 per box. A safety stock...

Q: The financial controller of Mexet plc is reviewing the company’s stock management

The financial controller of Mexet plc is reviewing the company’s stock management procedures. Stock has gradually increased to 25 per cent of the company’s total as...

Q: Rainbow Ltd is a manufacturer that uses alkahest in many of its

Rainbow Ltd is a manufacturer that uses alkahest in many of its products. At present the company has an alkahest plant on a site close to the company’s main factory. A summary of the alkahest plants b...

Q: SAP, the global leader in enterprise resource planning (ERP)

SAP, the global leader in enterprise resource planning (ERP) systems, offers several tools to help a business find an optimal solution to scheduling and planning problems. The advanced planner and opt...

Q: Located in a major southwestern U.S. city, Elysian

Located in a major southwestern U.S. city, Elysian Cycles (EC) is a wholesale distributor of bicycles and bicycle parts. Its primary retail outlets are located in eight cities within a 400-mile radius...

Q: Champion Electric, a regional supplier of electrical and electronic components,

Champion Electric, a regional supplier of electrical and electronic components, keeps thousands of SKUs (stock keeping units) of various products on hand for its customers. A new operations manager, B...

Q: The Casual Furniture Company (CFC) makes a variety of bookshelves

The Casual Furniture Company (CFC) makes a variety of bookshelves for homes and businesses. The shelves come in various heights, widths, materials, and finishes. Effective requirements planning is ess...

Q: Suppose that Steve in problem 32 does not want to have to

Suppose that Steve in problem 32 does not want to have to continuously monitor the company’s cash account. He instead would like to do a monthly audit (every 30 days) and then order the appropriate am...

Q: Thor industries operates 10 warehouses around the country. Each facility operates

Thor industries operates 10 warehouses around the country. Each facility operates independently, placing its own replenishment orders from the corporate manufacturing plant. To improve delivery lead t...

Q: McCain Inc. is considering a move toward completely on-line

McCain Inc. is considering a move toward completely on-line retailing. This would mean closing its eight independent brick and mortar stores, and replacing them with a single fulfillment center. Curre...

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: 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: 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: Refer to the original data given in Exercise III–5 for

Refer to the original data given in Exercise III–5 for Fiber Technology, Inc. The lead time required to receive an order of XL-20 is one month. Required: 1. Assuming stable usage of XL-20 each month,...

Q: Andrew and Fulton, Inc., uses 780 tons of a chemical

Andrew and Fulton, Inc., uses 780 tons of a chemical bonding agent each year. Monthly demand fluctuates between 50 and 80 tons. The lead time for each order is one month, and the economic order quanti...

Q: What is “safety stock”? What does safety stock provide safety

What is “safety stock”? What does safety stock provide safety against?

Q: Barbara Flynn is in charge of maintaining hospital supplies at General Hospital

Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60 (and was normally distributed). Furthermore, th...

Q: Authentic Thai rattan chairs (shown in the photo) are delivered

Authentic Thai rattan chairs (shown in the photo) are delivered to Gary Schwartz’s chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without safety s...

Q: A local hypermarket in Kuwait supplies juice boxes from a manufacturer in

A local hypermarket in Kuwait supplies juice boxes from a manufacturer in Saudi Arabia. The reorder point, without safety stock, is 800 boxes. The carrying cost is KWD 20 (Kuwaiti Dinar) per box per y...

Q: Mr. Beautiful, an organization that sells weight training sets,

Mr. Beautiful, an organization that sells weight training sets, has an ordering cost of $40 for the BB-1 set. (BB-1 stands for Body Beautiful Number 1.) The carrying cost for BB-1 is $5 per set per ye...

Q: The distributor of Sumitomo Tires in Egypt estimates the annual demand of

The distributor of Sumitomo Tires in Egypt estimates the annual demand of tires for next year to be normally distributed with a mean of 100,000 tires and a standard deviation of 3,000 tires. The order...

Q: Demand during lead time for one brand of TV is normally distributed

Demand during lead time for one brand of TV is normally distributed with a mean of 36 TVs and a standard deviation of 15 TVs. What safety stock should be carried for Dennis Yu’s Appliance Outlet to pr...

Q: Orlando’s Arnold Palmer Hospital, founded in 1989, specializes in treatment

Orlando’s Arnold Palmer Hospital, founded in 1989, specializes in treatment of women and children and is renowned for its high-quality rankings (top 10% of 2,000 benchmarked hospitals), its labour and...

Q: SAP, a global leader in enterprise resource planning (ERP)

SAP, a global leader in enterprise resource planning (ERP) systems, offers several tools to help businesses find an optimal solution to production scheduling and planning problems. For example, the ad...

Q: Travis Perkins plc (TP) is the largest UK merchant supplier

Travis Perkins plc (TP) is the largest UK merchant supplier of building material to selfbuilders and the construction industry. It has doubled in size in recent years, in part through acquisitions, an...

Q: CPFR pilots have been a popular diversion in the UK grocery sector

CPFR pilots have been a popular diversion in the UK grocery sector. Often, they show – as in this case – that considerable opportunities for improvement exist, but...

Q: O2 is Telefonica’s UK commercial brand and provides the communication network and

O2 is Telefonica’s UK commercial brand and provides the communication network and supply mobile phone devices through its network of retail stores. The supply chain team have established a high degree...

Q: The Fort Worth Texans have won three Super Bowls in the past

The Fort Worth Texans have won three Super Bowls in the past 5 years, including two in a row the past 2 years. As a result, sportswear such as hats, sweatshirts, sweatpants, and jackets with the Texan...

Q: The McDonald’s store at a busy mall has collected its last 10

The McDonald’s store at a busy mall has collected its last 10 months’ sales (in thousands of meal) data for its fast selling a la carte meal—The F...

Q: The amount of denim used daily by the Western Jeans Company in

The amount of denim used daily by the Western Jeans Company in its manufacturing process to make jeans is normally distributed, with an average of 3,000 yards of denim and a standard deviation of 600...

Q: The Uptown Bar and Grill serves Rainwater draft beer to its customers

The Uptown Bar and Grill serves Rainwater draft beer to its customers. The daily demand for beer is normally distributed, with an average of 18 gallons and a standard deviation of 4 gallons. The lead...

Q: PM Computers assembles personal computers from generic components. It purchases its

PM Computers assembles personal computers from generic components. It purchases its color monitors from a manufacturer in Taiwan; thus, there is a long and uncertain lead time for receiving orders. Le...

Q: Trejo Manufacturing makes a variety of household appliances at a single

Trejo Manufacturing makes a variety of household appliances at a single manufacturing facility. The expected demand for one of these appliances during the next 4 months is shown in the following tabl...

Q: Acme Manufacturing makes a variety of household appliances at a single manufacturing

Acme Manufacturing makes a variety of household appliances at a single manufacturing facility. The expected demand for one of these appliances during the next four months is shown in the following tab...

Q: Alice opens an aquarium store in a lively shop- ping mall

Alice opens an aquarium store in a lively shop- ping mall and finds business to be booming, but she often stocks out of key items customers want. She decides to experiment with inventory-control metho...

Q: Brenda, in problem 43, wants to consider set- ting

Brenda, in problem 43, wants to consider set- ting up a fixed-period inventory system for the 28-ounce bottle of Super Algaecide (SA) SKU. At the beginning of the current week, D. J. Kole, the materia...

Q: TV Galore is a new specialty store that sells television sets,

TV Galore is a new specialty store that sells television sets, video games, and other television-related products. A new Japanese-manufactured game sells cost $400. Because such games have a short lif...

Q: After one year you are promoted to assistant man- ager and

After one year you are promoted to assistant man- ager and realize current inventory management practices are not systematic with too much stock of some SKUs and too little of others. Your retail stor...

Q: A product with an annual demand of 1,000 SKUs has

A product with an annual demand of 1,000 SKUs has Co 5 $30 and Ch 5 $8. The demand exhibits some variability such that the lead-time demand follows a normal distribution, with a mean of 25 and a stand...

Q: The B&S Novelty and Craft Shop in Bennington, Vermont

The B&S Novelty and Craft Shop in Bennington, Vermont, sells a variety of quality, handmade items to tourists. It will sell 300 hand-carved miniature replicas of a colonial soldier each year, but the...

Q: Crew Soccer Shoes Company is considering a change of their current inventory

Crew Soccer Shoes Company is considering a change of their current inventory-control system for soccer shoes. The information regarding the shoes is given below: a. The company decides to use a fixed-...

Q: Wildcat Tools is a distributor of hardware and electronics equipment. Their

Wildcat Tools is a distributor of hardware and electronics equipment. Their socket wrench inventory needs better management. The information regarding the wrenches is given below. a. The company decid...

Q: Lou’s Bakery has established that JIT should be used for chocolate chips

Lou’s Bakery has established that JIT should be used for chocolate chips due to the high probability of the kitchen heat melting the chips. The average demand is 150 cups of chocolate chips per week....

Q: Caroline Highgrove, Hardy Hospital’s director of materials management, glanced at

Caroline Highgrove, Hardy Hospital’s director of materials management, glanced at the papers spread across her desk. She wondered where the week had gone. On Monday, the director of...

Q: High Tech, Inc. is a virtual store that stocks a

High Tech, Inc. is a virtual store that stocks a variety of cell phones in their warehouse. Customer orders are placed, picked and packaged, and then shipped to the customer. A fixed-order quantity in...

Q: Berta’s Shoe Company is considering a change of their current inventory-

Berta’s Shoe Company is considering a change of their current inventory-control system for soccer shoes. The information regarding the shoes is given below: The company decides to us...

Q: The Greyhound Company is considering changing its current inventory-control system

The Greyhound Company is considering changing its current inventory-control system for electronic picture frames. The information regarding one e-frame is given below: Use the FPS Safety Stock Excel t...

Q: Explain how a fixed-order-quantity inventory sys- tem

Explain how a fixed-order-quantity inventory sys- tem operates and how to use the EOQ and safety stock models.

Q: Eyring Manufacturing produces a component used in its production of washing machines

Eyring Manufacturing produces a component used in its production of washing machines. The time to set up and produce a batch of the components is two days. The average daily usage is 800 components, a...

Q: Bautista Company manufactures backpacks. A heavy-duty strap is one

Bautista Company manufactures backpacks. A heavy-duty strap is one part that the company orders from an outside supplier. Information pertaining to the strap is as follows: Economic order quantity 6,3...

Q: FootLove Shoe Co. produces and sells excellent quality walking shoes.

FootLove Shoe Co. produces and sells excellent quality walking shoes. After production, these shoes are distributed to 30 warehouses around the country. Each warehouse services approximately 120 store...

Q: Phillips Corporation is a major manufacturer of food processors. It purchases

Phillips Corporation is a major manufacturer of food processors. It purchases motors from Viking Corporation. Annual demand is 52,000 motors per year or 1,000 motors per week. The ordering cost is $36...

Q: Barbara Flynn is in charge of maintaining hospital supplies at General Hospital

Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60 (and was normally distributed). Furthermore, th...

Q: Authentic Thai rattan chairs (shown in the photo) are delivered

Authentic Thai rattan chairs (shown in the photo) are delivered to Gary Schwartz’s chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without safety s...

Q: A local hypermarket in Kuwait supplies juice boxes from a manufacturer in

A local hypermarket in Kuwait supplies juice boxes from a manufacturer in Saudi Arabia. The reorder point, without safety stock, is 800 boxes. The carrying cost is KWD 20 (Kuwaiti Dinar) per box per y...