For a given service level, why does a P system re quire a larger inventory investment than a Q system? What factors affect the magnitude of the difference?
Answer to relevant QuestionsSuppose 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? For the data in problem 11: In problem 11 Average annual sales = 600 tires Ordering cost = $40 per order Carrying cost = 25 percent per year Item cost = $50 per tire Lead time = 4 days Standard deviation of daily demand ...The Harvard Co-op orders sweatshirts with the Harvard University emblem on them and sells them for $50 each. During a typical month, 900 sweatshirts are sold (this includes all styles and sizes ordered from a particular ...In what ways do independent-demand inventories differ from dependent-demand inventories? Can the ABC principle be applied to manufacturing component inventories? Discuss.
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