Consider the following types of items carried in a retail store: lightbulbs, compact discs, and refrigerated drugs. Discuss the probable cost structure for each of these items, including item cost, carrying cost, ordering cost, and stockout cost.
Answer to relevant QuestionsWhy are stockout costs difficult to determine? Suggest an approach that might be used to estimate them. Suppose you are managing the Speedy Hardware Store. Give examples of items that might be managed by a P system and other items for which a Q system might be used. How do these items differ? Suppose you are the supplier of the Cover-up Drapery Company described in problem 13. It costs $2000 each time you change over your fabric producing machine from one type to another (1, 2, 3, or 4). Assume that your carrying ...For the data given in problem 8: In problem8 Average monthly sales = 120 units Ordering cost = $25 per order Carrying cost = 35 percent per year Item cost = $300 per unit Lead time = 4 days Standard deviation of daily ...Describe how MRP concepts could be used for the following service operations: a. Hotel b. Legal office
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