Holland believes that simulation is a useful approach to assess various inven- tory control alternatives. The...
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Holland believes that simulation is a useful approach to assess various inven- tory control alternatives. The historical data from Table 9.3 could be used to develop attractive inventory policies. The table was developed to record various costs and evaluate different alternatives. An example showing some recent DRAM inventory decisions is shown in Table 9.4. 1. Design a new inventory system for Swift Electronic Supply, Inc., using the data provided. 2. Provide the rationale for your system, which should include the decision rules you would follow to determine how much to order and when. TABLE 9.3 HISTORICAL DEMAND DATA FOR THE DRAM (UNITS) Day 1 2 3 4 5 6 7 8 9 10 11 12 13 15 14 15 16 17 18 19 20 Demand Day Demand Day 869 21 663 41 902 22 1,146 42 1,109 23 1,016 43 947 24 1,166 44 968 25 829 45 917 26 723 46 1,069 27 749 47 1,086 28 766 48 1,066 29 996 49 929 30 50 1,022 31 51 959 32 52 756 33 53 882 34 54 829 35 55 726 36 56 666 37 57 879 38 58 1,086 39 59 992 40 60 1,122 962 829 862 793 1,039 1,009 979 976 856 1,036 Demand 959 703 823 862 966 1,042 889 1,002 763 932 1,052 1,062 989 1,029 823 942 986 736 1,009 852 TABLE 9.4 EXAMPLE SIMULATION Day Beginning inventory position Number ordered Daily demand Day-ending inventory Ordering costs ($200 per order) Holding costs ($0.05 per piece per day) Shortage costs ($2 per piece) Total cost for day Cumulative cost from last day Cumulative costs to date 1 1,700 1,500 869 831 200 41.55 0 241.55 0.00 241.55 2 831 902 -71 0.00 142 142.00 241.55 383.55 3 1,500 3,000 1,109 391 200 19.55 391 1,200 947 -556 200 0.00 0 5 3,000 968 2,032 6 3,232 917 2,315 101.60 115.75 1,112 0 0 219.55 1,312.00 101.60 115.75 383.55 603.10 1,915.10 2,016.70 603.10 1,915.10 2,016.70 2,132.45 7 2,315 1,900 1,069 1,246 200 62.30 0 262.30 2,132.45 2,394.75 8 9 10 Holland believes that simulation is a useful approach to assess various inven- tory control alternatives. The historical data from Table 9.3 could be used to develop attractive inventory policies. The table was developed to record various costs and evaluate different alternatives. An example showing some recent DRAM inventory decisions is shown in Table 9.4. 1. Design a new inventory system for Swift Electronic Supply, Inc., using the data provided. 2. Provide the rationale for your system, which should include the decision rules you would follow to determine how much to order and when. TABLE 9.3 HISTORICAL DEMAND DATA FOR THE DRAM (UNITS) Day 1 2 3 4 5 6 7 8 9 10 11 12 13 15 14 15 16 17 18 19 20 Demand Day Demand Day 869 21 663 41 902 22 1,146 42 1,109 23 1,016 43 947 24 1,166 44 968 25 829 45 917 26 723 46 1,069 27 749 47 1,086 28 766 48 1,066 29 996 49 929 30 50 1,022 31 51 959 32 52 756 33 53 882 34 54 829 35 55 726 36 56 666 37 57 879 38 58 1,086 39 59 992 40 60 1,122 962 829 862 793 1,039 1,009 979 976 856 1,036 Demand 959 703 823 862 966 1,042 889 1,002 763 932 1,052 1,062 989 1,029 823 942 986 736 1,009 852 TABLE 9.4 EXAMPLE SIMULATION Day Beginning inventory position Number ordered Daily demand Day-ending inventory Ordering costs ($200 per order) Holding costs ($0.05 per piece per day) Shortage costs ($2 per piece) Total cost for day Cumulative cost from last day Cumulative costs to date 1 1,700 1,500 869 831 200 41.55 0 241.55 0.00 241.55 2 831 902 -71 0.00 142 142.00 241.55 383.55 3 1,500 3,000 1,109 391 200 19.55 391 1,200 947 -556 200 0.00 0 5 3,000 968 2,032 6 3,232 917 2,315 101.60 115.75 1,112 0 0 219.55 1,312.00 101.60 115.75 383.55 603.10 1,915.10 2,016.70 603.10 1,915.10 2,016.70 2,132.45 7 2,315 1,900 1,069 1,246 200 62.30 0 262.30 2,132.45 2,394.75 8 9 10
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Auditing A Risk Based Approach to Conducting a Quality Audit
ISBN: 978-1305080577
10th edition
Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg
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